The Finance Bill 2026-27 has unveiled a revised taxation framework for imported vehicles, introducing significant changes to customs duties and taxes across various engine categories.
Under the proposed measures, imported vehicles with engine capacities between 2000cc and 3000cc will be subject to an 86% duty from July 1, while vehicles above 3000cc will face a 92% duty rate. In contrast, the government has proposed substantial reductions in duties on smaller-engine vehicles, potentially lowering import costs for a wider range of consumers.
According to the proposed structure, duties on 1800cc vehicles would decrease from 156% to 74%, while vehicles above 1500cc would see rates reduced from 91% to 57%. For cars between 1000cc and 1500cc, duties are proposed to fall from 76% to 52%, while vehicles up to 850cc would see duties reduced from 66% to 42%.
The bill also outlines a revised taxation policy for imported electric vehicles (EVs). EVs valued at up to $75,000 are proposed to face a 30% duty, while those exceeding $110,000 would be taxed at 40%.
In addition, fixed and adjusted token taxes are expected to apply across different engine capacities and vehicle model years beginning July 1, as part of broader efforts to restructure the automotive taxation framework.
The proposed changes are aimed at rationalizing import duties while balancing revenue objectives, consumer affordability, and developments in Pakistan’s evolving automotive market.