With effect from October 1, 2025, the Federal Board of Revenue (FBR) has approved a 40% regulatory levy on the commercial import of automobiles up to five years old.
Importers and dealers of used automobiles are anticipated to be affected by the change, as they will now have to pay higher taxes.
New taxes on used automobiles
The new regulatory charge will apply to all commercial imports of used cars up to five years old, per FBR’s recently released SRO 1898.
According to the notification, importers will now have to deal with an increased financial burden on cars entering Pakistan starting on October 1st because this charge is on top of the one that was already in place on July 1.
