40pc additional regulatory duty imposed on imported used vehicles

Islamabad: The federal government has imposed an additional 40 percent regulatory duty tax on the import of used vehicles. After the cabinet approval, the Federal Board of Revenue (FBR) has also issued a notification.

According to the notification issued by the federal government, an additional 40 percent duty will be imposed on the commercial import of used vehicles; this regulatory duty will be in addition to the duty already imposed.

The notification said that this additional regulatory duty will remain in effect until June 30, 2026. While after June 30 next year, this duty will be reduced by 10 percent every year, and will be completely abolished by 2029-30.

It is pertinent to note that the federal government has allowed the commercial import of used vehicles.

In addition, the Ministry of Commerce has issued a notification allowing the commercial import of vehicles.

Initially, vehicles less than 5 years old will be allowed to be imported till June 30, 2026; after this, the age limit of vehicles will be removed.

Necessary amendments have been made to the Import Policy Order 2022. Import will be allowed subject to strict compliance with environmental and safety standards.

The Economic Coordination Committee (ECC) had approved the commercial import of used vehicles on September 24.