Customs Duty Reduction on the Horizon: Cars to Become Cheaper Soon?

Customs Duty Reduction on the Horizon: Cars to Become Cheaper Soon?

Finally, a sigh of relief for locals as the government has reduced the customs duty on the import of car parts. For now, the customs duty is reduced for 1000cc and smaller engine cars only. As per a report, the revenue department has also issued an amendment notification for this purpose. 

You must be wondering how much the duty has decreased. Well! The duty on assembly kits of cars (1000cc and less) is reduced from 30% to 15%. Another duty reduced in this regard is on the import of tyre tubes. For tyre tubes, the duty is now 16% which was 25% before. 

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It is worth mentioning that the 15% reduction in the duty is valid for 3 years only. Also, it is valid for the new model cars certified by Engineering Development Board (EDB) only. For older model cars having the same engine size (1000cc or less), the duty is now 30% compared to the previous duty of 32.5%. 

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List of Cars With 1000cc and Smaller Engine

After the new reduced customs duty on 1000cc cars in Pakistan, you must be thinking about the car models whose prices are expected to decrease. Here is the list of 1000cc and smaller engine new cars available in Pakistan.


A reduction in prices is going to help companies to reduce the prices of cars in the 1000cc or smaller engine category. The sales of all major automobile companies in Pakistan had decreased significantly in 2022 compared to 2021 as per the latest PAMA car sales report. If the companies pass down the benefit (which they should), their sales are likely to get a boost. Many people were forced to buy used cars in Pakistan due to frequent increases in car prices in 2022.

It is worth mentioning that The State Bank of Pakistan (SBP) has also eased the sanctions on the import of CKDs for car assemblers in Pakistan from 2-Jan-2023. These decisions indicate that the government is finally trying to give some relief to medium-income people who mostly buy 1000cc or smaller-engine cars.

Do you think that the companies will pass down the 100% benefit of this reduction in duty to the customers? Share your opinion in the comment section below. 

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