The Government of Pakistan has rolled out a new notification, SRO 1152(I)/2025, announcing updated Regulatory Duties (RD) on a wide range of imported goods, including cars. This change comes into effect from July 1st, 2025, and will remain valid until June 30th, 2026, unless revised earlier and specifically pushing SUVs/4×4 vehcile prices downward.
If you’re involved in the import of vehicles or planning to buy an imported car, here’s everything you need to know.
Regulatory Duty is an additional tax the government imposes on imports to either control the volume of imports, support local industries, or generate extra revenue. When applied to cars, RD directly influences the price of imported vehicles. For the auto sector, these duties are aimed at discouraging luxury imports, managing the trade deficit, and encouraging local assembly and manufacturing.
RD on SUVs/4×4 Vehicles
Under the new regulatory duty structure, SUVs and 4×4 vehicles, whether new or used and across all engine sizes, are now subject to a 50% Regulatory Duty. This significant cut directly translates to a decrease in the prices of these vehicles which specifically impacts luxury models such as the Toyota Prado and Land Cruiser.
The new regulatory duty applies from July 1, 2025, and is effective until June 30, 2026.
Assembly Kits?
For businesses engaged in assembling vehicles locally, the government has kept the Regulatory Duty on CKD/SKD kits (completely/semi-knocked down kits) at 5%, as long as the kits are not already separately listed in the duty table. This is seen as a supportive measure to promote local car manufacturing and reduce dependency on fully built imports.
An important clause in the SRO specifies that vehicles imported with bullet-proofing or other security enhancements will be valued according to SRO 1121(I)/2007. This helps standardize their valuation for taxation purposes.
Unless amended earlier, these duties will apply throughout the 2025–2026 fiscal year and should be factored into any import-related planning.
This updated RD structure may not be good news for those who rely on importing higher-end vehicles or used cars, especially SUVs. However, it provides some breathing room for local assemblers and manufacturers through reduced duties on kits.
