Car Import Duties in Pakistan

yellow car, a honda Japanese sport car model image by alma_sacra from

If you're planning to import a vehicle into Pakistan, familiarise yourself with the full regulations and rulings of the Pakistan Board of Revenue. Specific rules and duties may depend upon your nationality, the characteristics of the car and your reason for importation.

All cars fall into two categories, on which Pakistan's duty system is based: special regime vehicles and normal regime vehicles. Determine which regime your vehicle falls under to calculate its corresponding duties.

Special Regime Vehicles

Vehicles may be designated as "special regime" if they are used vehicles and if their importation is due to one of three factors: a transfer of residence, a gift or personal baggage. In addition, you can only import one vehicle under the special regime every two years. If the car chassis has been tampered with or if the paperwork is false, you cannot import the car. Permissible vehicles include cars for passenger transport, buses, trucks, tractors, bulldozers, motorcycles and scooters, pickups and 4x4s. The car must be less than three years old. If the car is intended as a gift or is imported due to a transfer of residence, then you must have resided outside Pakistan for at least two years prior to the date of importation. The car may only qualify as a gift if it is for a parent, a son or daughter, a spouse or a sibling.

Special Regime Duties

For cars falling under the special regime, duties are determined based principally on the engine capacity. As of August, 2010, duties can range from US$4,000 to US$12,000, with vehicles with engines of less than 800cc incurring the former value and those with engines between 1601 and 1800cc incurring the latter. While the make and age of the vehicle do not directly affect the duty, there is a reduction, to reflect depreciation, of 2 per cent for every month of the car's age, up to a maximum of 50 per cent. These months are counted from the initial date of the vehicle registration abroad to the date of importation into Pakistan.

Normal Regime Vehicles

For those vehicles that do not qualify as special regime vehicles, a separate set of criteria determine their respective duties. All new vehicles and used vehicles that do not fall under any of the special regime criteria are subject to duties based on the car's engine size. The minimum duty, for a new vehicle with an engine under 800cc, is 50 per cent customs duty on the vehicle's assessed value, plus a sales tax and federal excise tax. The maximum duty, for a non-Jeep with an engine of 1801cc or larger, is 90 per cent of the vehicle's assessed value, plus a sales tax and federal excise tax.