The government has revised taxes on various categories of vehicles, with the new rates set to take effect from July 1.
Under the Finance Bill 2026-27 approved by Parliament, the federal government has announced revised duty and tax rates for imported vehicles. According to the new framework, imported vehicles with engine capacities ranging from 2,000cc to 3,000cc will be subject to an 86% duty, while vehicles with engines of 3,001cc and above will face a 92% duty.
The bill also introduces significant reductions in duties and taxes on several categories of imported vehicles. The total duty and tax rate on 1,800cc vehicles has been reduced from 156% to 74%. For vehicles above 1,500cc, the rate has been lowered from 91% to 57%. Similarly, duties and taxes on imported vehicles between 1,000cc and 1,500cc have been cut from 76% to 52%, while the rate for 850cc vehicles has been reduced from 66% to 42%.
As part of the new auto policy, the government has decided not to impose Special Excise Duty on vehicles up to 1,800cc.
For electric vehicles, a customs duty of 30% will apply to imported EVs valued at up to $75,000, while EVs worth more than $110,000 will be subject to a 40% customs duty.
The Finance Bill further states that from July 1, a one-time fixed tax of Rs10,000 will be imposed on vehicles up to 1,000cc. Vehicles up to 1,000cc manufactured before 2010 will be charged a token tax of Rs20,000. For vehicles between 1,001cc and 1,300cc, token tax will be calculated at 0.3% of the total invoice value.
Under the new fiscal measures, the federal token tax has been set at 0.25% of the total invoice value. Vehicles manufactured before 2010 will pay a token tax of Rs2,500, while post-2010 models will be charged Rs6,200.
Also Read: Affordable electric cars under 60 lakh in Pakistan
