The Federal Board of Revenue (FBR) has imposed an additional 30% regulatory duty (RD) on commercially imported used vehicles with effect from July 1.
According to SRO 1065(I)/2026 issued on Tuesday, and in exercise of powers conferred under sub-section (3) of Section 18 of the Customs Act, 1969, the federal government has replaced SRO 1898(I)/2025 and decided to levy a 30% regulatory duty on used commercial vehicles imported under clause (xvi) of serial number 10 of the Third Schedule of the Import Policy Order 2022.
The duty will apply to used vehicles falling under Pakistan Customs Tariff (PCT) headings 8702, 8703, and 8704, subject to fulfillment of the relevant conditions.
The notification further said that the 30% regulatory duty will be charged in addition to the regulatory duties already imposed under SRO 1064(I)/2026 dated June 30, 2026.
It should be noted that the federal government plans to reduce the current 40% regulatory duty on the commercial import of used vehicles up to 5 years old, by 10% each fiscal year until it is fully eliminated.
