Customs duty on cars in Pakistan is not a single charge but a stack of six separate federal levies that together run from roughly 62 percent of a vehicle’s assessed value for a small electric car to over 400 percent for a large-engine luxury vehicle. The Federal Board of Revenue (FBR) administers these taxes under the Customs Act of 1969, and the total you pay depends chiefly on engine displacement, fuel type, and whether the car is new or used. The math surprises most first-time importers, so it helps to see how the classification works before looking at the numbers.
What Determines the Rate
Every imported vehicle is matched to a Pakistan Customs Tariff (PCT) code based on engine displacement, fuel type, body style, and whether it arrives fully built or in parts. Engine displacement, measured in cubic centimeters, is the single biggest factor. Passenger cars are grouped into tiers starting at 800cc and climbing through 1000cc, 1300cc, 1500cc, 1800cc, and beyond 3000cc. Each jump in displacement brings a sharply higher combined tax rate.
The system also separates conventional internal-combustion vehicles from hybrid electric vehicles (HEVs) and fully electric vehicles (EVs). Hybrids and EVs sit in their own tariff categories with lower rates, a deliberate push toward cleaner imports. Used vehicles follow the same PCT codes as new ones but receive a depreciation allowance that reduces their taxable value. The make, model, year of manufacture, and VIN must match the declared PCT code exactly; misclassification delays clearance and can trigger penalties.
The Six Levies That Make Up the Total
There is no single “customs duty” figure. Six charges stack, each calculated as a percentage of the vehicle’s assessed value or the cumulative value after earlier levies have been added:
- Customs Duty (CD) is the base levy, set at rates that vary by engine size and vehicle type. For conventional passenger cars above 1800cc, this alone can reach 100 percent or more of the assessed value.
- Regulatory Duty (RD) is an adjustable surcharge the government raises or lowers to control import volumes. Large-engine cars face the steepest regulatory duty rates.
- Additional Customs Duty (ACD) currently sits at 6 percent on many vehicle categories, applied on top of the base customs duty.1Trade Information Portal of Pakistan. Tariffs – View TradeInfo
- Federal Excise Duty (FED) climbs with engine size. Certain 4×4 vehicles with engines between 850cc and 1000cc, for example, face a 2.5 percent FED.2Trade Information Portal of Pakistan. Tariff Rate – View TradeInfo
- Sales Tax is 18 percent as a standard rate, but completely built-up (CBU) imported vehicles and locally manufactured vehicles with engines of 1400cc and above are taxed at 25 percent.
- Withholding Tax, or Advance Income Tax, is collected at the import stage as an advance payment toward income tax. For vehicles above 2000cc, filers on FBR’s Active Taxpayers List pay 6 to 10 percent of the vehicle’s value depending on engine size. Non-filers pay 200 percent more, so their rates jump to 18, 24, or 30 percent.3Federal Board of Revenue, Government of Pakistan. Vehicles
The non-filer premium deserves emphasis. A 200-percent increase on a 10-percent rate produces a 30-percent rate, which is triple the filer’s amount, not double as often described. Getting yourself onto the Active Taxpayers List before starting the import saves a substantial sum.
Total Duty by Engine Size
Combining every levy, the total tax burden as a percentage of assessed value looks roughly like this for 2025:
- 1301–1500cc conventional: about 165 percent
- 1501–1800cc conventional: about 188 percent
- 1801–3000cc conventional cars and jeeps: about 361 percent
- Above 3000cc conventional: about 401 percent
- Hybrid 1801–2500cc: about 287 percent
- Hybrid 2501–3000cc and above: about 287 to 322 percent
- Electric vehicle assessed under $50,000: about 62 percent
- Electric vehicle assessed above $50,000: about 102 percent
A mid-range sedan with a 1500cc engine purchased abroad for $15,000 would face roughly $24,750 in combined taxes, pushing the landed cost before registration to nearly $40,000. A luxury SUV with a 3000cc engine purchased for $50,000 could accumulate over $180,000 in duties alone. That is why most Pakistanis buying imported cars concentrate on the 1300 to 1500cc range, where the hit is painful but still manageable.
Hybrid and Electric Concessions
Pakistan’s EV Policy 2020 introduced concessionary customs duty rates to draw electric vehicles into the market. Four-wheeled EVs imported as completely built units currently enjoy a reduced customs duty of 25 percent, a concession available through June 30, 2026. Manufacturers approved by the Engineering Development Board can import up to 100 units per variant at 50 percent of that 25 percent, effectively 12.5 percent customs duty. Electric buses and trucks qualify for just 1 percent customs duty.4Board of Investment, Government of Pakistan. Concessionary Rate of Customs Duty on Import of Completely Built Electric Vehicles
Hybrids also receive preferential treatment. FBR allows a 50 percent exemption from duties and taxes on HEV imports, which brings their total incidence well below that of conventional vehicles of the same engine size. A 2000cc hybrid faces roughly 287 percent rather than the 361 percent a conventional car of comparable displacement would attract. The gap narrows for smaller engines, so the hybrid concession matters most for larger vehicles.
How Depreciation Cuts the Taxable Value on Used Cars
Used cars benefit from a depreciation deduction that reduces the value on which duties are calculated. Under Customs General Order 4/93, the schedule allows 4 percent depreciation per month for the first three months from the date of manufacture, then 2 percent per month for each subsequent month, up to a maximum of 50 percent. A vehicle two and a half years old at the time of shipping hits the 50-percent cap, so its taxable value is halved compared with a brand-new equivalent.
Depreciation applies to the assessed value set by FBR’s valuation rulings, not necessarily the price you paid. FBR publishes valuation tables that fix minimum taxable values for common makes and models. If your purchase invoice shows a price lower than the FBR valuation, the higher figure is used. A bargain abroad does not always translate into lower duties at the port.
Who Can Import, and Under Which Scheme
Under Appendix-E of the Import Policy Order 2022, Pakistani nationals living abroad can import vehicles through three schemes. None of them can be used again by a person who has already imported, gifted, or received a vehicle in the previous 700 days.5Ministry of Commerce. Import Policy Order 2022
The Personal Baggage Scheme is open to anyone who has spent at least 180 days abroad in the seven months before applying. The vehicle must be shipped in the importer’s name, and the importer must return to Pakistan to clear it personally. Students receiving remittances from Pakistan and non-earning family dependents are not eligible.
The Gift Scheme lets a Pakistani national who has lived abroad for at least 700 days in the past three years gift a vehicle to a family member normally resident in Pakistan. The IPO defines family as parents, siblings, spouse, and children including married children, but excludes children under 18.
The Transfer of Residence scheme applies to nationals permanently relocating to Pakistan and carries the same 700-day requirement over the past three years. Evidence of a genuine change of residence, such as cancelled visas or proof of employment termination abroad, is typically required.
All three schemes share the same age limits: passenger cars cannot be older than three years, and vans, pickups, trucks, and buses cannot be older than five. Age is counted from January 1 of the year after manufacture through the shipment date on the bill of lading.
Right-Hand Drive Requirement
Pakistan drives on the left, and every registered vehicle must be right-hand drive. Left-hand drive vehicles cannot be registered or used on the road, which rules out most cars sourced directly from the United States, continental Europe, or the Middle East unless they are converted before shipping. Japan and the United Kingdom dominate as source markets because their domestic vehicles already have the steering wheel on the right. Conversion is possible, sometimes routed through Sri Lanka, but adds cost and needs to pass Pakistani inspection standards.
Passing Through: Temporary Import Under a Carnet
Tourists and overlanders driving through Pakistan do not pay full import duties if they carry a Carnet de Passage en Douane. This international customs document guarantees that the vehicle will leave the country within the allowed period, and it is valid for one year from issuance. The issuing automobile association in the traveler’s home country typically requires a security deposit of $1,000 to $10,000 based on the vehicle’s value and the countries on the itinerary. The deposit is refunded once the vehicle returns home with all customs stamps recorded. If the vehicle stays in Pakistan past the Carnet’s expiry, the full duty liability is triggered and the deposit is forfeited to cover the claim.