Government Confirms 40% Regulatory Duty on Commercial Import of Used Vehicles

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ISLAMABAD: The Government of Pakistan issued SRO 1898(1)/2025 to clarify its stance on duties for commercial imports of used vehicles. The notification imposes a 40% regulatory duty on commercial used car imports, in addition to the standard customs duty already applicable.

Copy of the notification issued by the Government of Pakistan Ministry of Finance and Revenue

Background: SRO 1895 Issued on 30th September

On 30th September 2025, the Ministry of Commerce issued SRO 1895(1)/2025, which allowed the commercial import of used vehicles under specific PCT codes:

  • 8702: Buses, vans, MPVs (10 or more passengers)
  • 8703: Passenger cars (sedans, hatchbacks, SUVs)
  • 8704: Goods transport vehicles (pickups, trucks, delivery vans)
  • 8711: Motorcycles

At that time, the SRO did not state whether the government would implement the 40% regulatory duty (RD) that had been widely speculated and previously hinted at in policy statements.

The omission created uncertainty among importers and stakeholders.

Latest Development: SRO 1898 Issued on 1st October

To remove this uncertainty, the Government issued SRO 1898(I)/2025 on 1st October 2025, confirming that a 40% regulatory duty will indeed apply to the commercial import of used vehicles under the above-mentioned PCT codes.

According to the notification, this 40% regulatory duty is in addition to standard customs duties.

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