Govt policy shift lowers cost of imported vehicles

July 02, 2025 (MLN): The government has revised downward the overall incidence of duties on imported vehicles following the fiscal policies introduced under Pakistan’s Finance Act 2025, accompanied by new Statutory Regulatory Orders (SROs).

Key reductions have been made in Customs Duty (CD), Regulatory Duty (RD), and Additional Customs Duty (ACD), with ACD being lowered from 7% to 6%.

While earlier discussions largely centered on percentage-based tax reductions, the real-world impact is now visible in retail prices.

This is particularly evident for high-end imported SUVs such as the Toyota Land Cruiser LC300, LC200, Prado LC150, Lexus LX570, and Lexus LX600, where the drop in total import duties has translated directly into savings for consumers.

Reduced Prices of Imported SUVs:

 LC200 – URJ 202 Series (ZX & AX).

LC300 – AX & ZX Variants.

The new Budget 2025–26 is making premium SUVs more accessible to importers and affluent buyers by cutting down excessive duties.

These price reductions may also promote more transparent import practices, reduce misuse of amnesty schemes, and encourage a rise in documented vehicle imports.

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