In a major policy shift under the Finance Act 2025, the Government of Pakistan has reduced import duties on luxury vehicles, including high-end SUVs like the LC300, LC200, LX570, and LX600. The revised duties aim to provide relief to automotive enthusiasts and make imported vehicles more affordable for buyers across the country.
What’s Changed?
As part of the new fiscal measures, the Regulatory Duty (RD) on cars above 1800cc has been cut by 40%. This reduction is more significant for luxury and high-end imported vehicles, making them more accessible to potential buyers.
The Additional Customs Duty (ACD) has also been reduced from 7% to 6% for all imported vehicles. Though a seemingly small decrease, this 1% reduction can result in substantial savings for buyers of high-value vehicles, further affecting the final retail price. The changes are now visible in updated pricing for premium imported cars and SUVs, offering tangible relief.
This recalibration in duties is part of a broader strategy to encourage the import of modern vehicles, reduce smuggling, and promote a more formal automotive market. As a result, luxury cars are becoming slightly less expensive, making them more attractive to buyers and investors alike.
The reduction in import duties signals a positive shift in the automotive market, and now may be an ideal time for those interested in purchasing luxury imported vehicles.
