Pakistan has reduced the regulatory duty on the commercial import of used vehicles with engine capacities below 1,800cc, effective from 1 July.
The Federal Board of Revenue (FBR) has issued a notification lowering the additional regulatory duty.
The notification states that the additional duty on the commercial import of used vehicles below 1,800 cc has been reduced from 40 percent to 30 percent.
According to the notification, the 30 percent regulatory duty will be charged in addition to the existing duties.
Sources said that the additional duty will be reduced by 10 percent each year until it is completely phased out by 2030.
Pakistan currently allows the commercial import of used vehicles following amendments to the Import Policy Order 2022.
However, vehicle imports remain subject to strict compliance with environmental and vehicle safety standards.