Government Removes Import Duty there are strong discussions and policy signals suggesting that imported cars in Pakistan may become cheaper in the coming months. The government is reviewing import duties, taxes, and restrictions to make vehicles more affordable and increase competition in the local market.
Currently, car prices in Pakistan remain high due to heavy import duties, additional taxes, and a weakening currency. However, if the government reduces or removes certain import duties, it could significantly lower the cost of imported vehicles, giving relief to middle-class buyers and car enthusiasts.
Will Imported Cars Get Cheaper in Pakistan?
Yes, there is a strong possibility—but it depends on government policy decisions. If duties like Customs Duty, Additional Customs Duty (ACD), Regulatory Duty (RD), and Sales Tax are reduced, imported cars will become cheaper.
However, the government also needs to protect local car manufacturers. That’s why any major reduction in import duty is usually gradual. If implemented, prices of used Japanese cars and other imported vehicles could drop noticeably.
Which Country is the Cheapest to Import Cars?
Japan is considered the cheapest and most popular country for importing cars into Pakistan. Japanese vehicles are affordable, reliable, and widely available in auctions.
Other options include:
- United Kingdom (UK) – slightly expensive but good quality cars
- Thailand – popular for pickup trucks
- United Arab Emirates (UAE) – fewer options but sometimes cheaper luxury cars
Among these, Japan remains the best choice due to low auction prices and easy availability of spare parts in Pakistan.
How Much Duty on Imported Cars in Pakistan?
Import duty in Pakistan varies depending on engine capacity (cc). Here is a general idea:
- Up to 1000cc: Around 50%–60% duty
- 1001cc to 1300cc: Around 60%–75% duty
- 1301cc to 1800cc: Around 75%–100% duty
- Above 1800cc: Can exceed 100% total tax
These duties include multiple taxes such as:
- Customs Duty
- Regulatory Duty
- Additional Customs Duty
- Sales Tax
- Income Tax
Because of these taxes, the final price of an imported car can double compared to its original cost.
Can I Import a 5-Year-Old Car in Pakistan?
Yes, but with conditions.
Under current rules:
- Used cars up to 3 years old can be imported under normal schemes
- Up to 5 years old vehicles are allowed under specific schemes like baggage, gift, or transfer of residence
So, a 5-year-old car can be imported, but not through regular commercial import. It must meet eligibility criteria under special schemes.
What This Means for Buyers
If the government reduces import duties, car buyers in Pakistan will benefit in several ways:
- Lower car prices
- More variety of vehicles
- Better quality options
- Increased competition for local manufacturers
However, until official notification is issued, buyers should stay cautious and avoid making decisions based only on rumors.
Car Prices Pakistan 2026 Final Words
The possibility of cheaper imported cars in Pakistan is real, but it depends entirely on upcoming government policies. If import duties are reduced, it could transform the auto market and provide much-needed relief to consumers.