ISLAMABAD – The FBR has announced a 40 percent regulatory duty on the import of used and old vehicles under the Import Policy Order 2022.
This decision applies to vehicles that fall under specific PCT headings and meet the conditions outlined in the policy. The measure has been introduced under Section 18(3) of the Customs Act 1969, giving the authority to regulate imports in order to safeguard the national economy.
According to the notification, the FBR clarified that the new duty will be charged on vehicles classified under PCT headings 8702, 8703, 8704, and 8711. These categories mainly include commercial imports of used cars and motorcycles.
The primary purpose of this regulatory duty is to control the growing influx of used vehicles into the country. The government believes the move will help reduce pressure on foreign exchange reserves and stabilize the economy. Officials noted that unchecked imports often create imbalances in the trade structure, which affects economic growth.
The FBR also highlighted that the decision aims to protect Pakistan’s local auto industry. By discouraging heavy reliance on imported vehicles, the government hopes to encourage domestic manufacturing and create a fair environment for local businesses.
Industry experts suggest the policy could limit the availability of imported used vehicles in the local market. While this may impact consumers seeking affordable options, authorities argue that the long-term benefits of protecting foreign reserves and supporting local production outweigh the challenges.
The imposition of this duty is part of the broader effort to manage imports responsibly, ensure economic stability, and promote sustainable growth.
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