Updated Car Taxes & Duties in Pakistan

Updated Car Taxes & Duties in Pakistan

Recently, a lot of changes have been made to taxes and duties applicable on the local automotive industry. These changes have been made piecemeal and therefore it is hard for people interested in this sector to keep track of these ever changing duties and taxes. This blog is being written to compile all the recent major changes in one document. In short, you’ll find all the updated taxes and duties here. 

So, let’s begin with the most recent.

Registration Tax for Commercial Vehicles in Islamabad

This tax has been decreased from 4% to 1%.

Customs Duty on Import of CKD Kits of Vehicles Up To 1,000cc

This duty has been decreased from 30% to 15%

Customs Duty on Tyre and Tubes

This import duty has been decreased from 25% to 16%

Customs Duty on the Import of Older Models of Up To 1,000cc cars

This duty has been decreased from 32.5% to 30%

The Prices of These Cars Should Decline Now

On the face of it, the government is reducing these duties and taxes so the price of automobiles can go down in Pakistan. This policy is being pursued in the hope of re-starting the slumping local automobile scene, especially declining sales. 

As a result of these reductions, these cars’ prices should decline:

  1. Suzuki Alto
  2. Suzuki Cultus
  3. Suzuki Wagon R
  4. Suzuki Bolan
  5. United Bravo
  6. Changan Karvaan
  7. DFSK Prince Pearl
  8. Kia Picanto
  9. DFSK Humsafar K07 S
  10. United Alpha 

Whether their manufacturers will reduce their prices is another matter. 

Do you think these measures are enough to kickstart the sluggish automotive sector in the country? Let us know your thoughts in the comments below. 

For the sale and purchase of new and used local and imported cars, don’t look further than OLX Pakistan Motors page. 

You may also like to read:

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

Suzuki Alto Sales Increased by 76% | Toyota Corolla and Yaris Sales Decreased by 66% (PAMA Pakistan)

One response to “Updated Car Taxes & Duties in Pakistan”

  1. This is not enough to get the prices reduced since the ex factor of USD to PKR matters alot to market and by existence of this factor its almost no impact on reducing prices by auto sector.. Govt should decrease the customs duties to 0% on CKD kits and also reduce sales tax to 5% and then monitor price factor with automotive companies to give compensation to citizens and ask these sectors to launch vehicles around 1.2 Million to 1.5 Million for vehicles up to 1000 cc.

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