The Tariff Policy Board (TPB), chaired by Commerce Minister Jam Kamal Khan, has approved the commercial import of five-year-old used vehicles with an additional 40% duty, despite objections from the local auto industry.
The TPB, which includes representatives from Commerce, Industries and Production, Finance Division, and the Federal Board of Revenue, deliberated on the matter in two consecutive meetings before granting approval, according to a report in Business Recorder.
The summary will now be forwarded to the Economic Coordination Committee (ECC) for final approval.
Under Pakistan’s IMF commitments, tariffs on commercially imported used cars will be reduced gradually, starting with a 40% additional regulatory duty (ARD) in FY2025-26, cut by 10% each year.
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Moreover, all restrictions on the commercial import of used motor vehicles are to be removed by the first quarter of FY2026, initially limited to cars less than five years old and meeting prescribed environmental and safety standards. From July 2026 onward, the age limit will also be lifted.
According to the finalized proposal, vehicles falling under PCT 8703 will be eligible for commercial import, restricted to those not older than five years until June 30, 2026. Imports will remain subject to compliance with environmental and safety regulations as defined by the Ministry of Industries and Production and other relevant authorities.
