{"id":2918,"date":"2026-07-02T07:10:44","date_gmt":"2026-07-02T07:10:44","guid":{"rendered":"https:\/\/wisewheels.com.pk\/blogs\/?p=2918"},"modified":"2026-07-02T07:24:11","modified_gmt":"2026-07-02T07:24:11","slug":"budget-2026-27-imported-cars-face-up-to-92-excise-duty","status":"publish","type":"post","link":"https:\/\/wisewheels.com.pk\/blogs\/budget-2026-27-imported-cars-face-up-to-92-excise-duty\/","title":{"rendered":"Pakistan Budget 2026-27: Imported Cars Face Up to 92% Excise Duty"},"content":{"rendered":"

The cost of owning a luxury imported vehicle in Pakistan may soon rise dramatically. <\/span>After the National Assembly approved Budget 2026-27, revised tax proposals for imported vehicles revealed a sharp increase in Federal Excise Duty (FED) on larger engine petrol cars and SUVs. While the final position will only become official once the Finance Act is published, the proposed rates are already creating concern among importers, dealers, and prospective buyers.<\/span><\/p>\n

The biggest surprise is the jump in excise duty on imported petrol vehicles above 2,000cc. Meanwhile, electric vehicles (EVs) largely retain the structure proposed in the original Finance Bill, signaling that policymakers continue to favor cleaner mobility over conventional fuel-powered luxury imports. <\/span>For anyone considering importing a luxury SUV, premium sedan, or high-value EV, these changes could significantly affect purchasing decisions over the coming months.<\/span><\/p>\n

Key Budget 2026-27 Changes for Imported Vehicles<\/b><\/h2>\n

The National Assembly Standing Committee on Finance recommended substantial increases in FED for imported petrol vehicles.<\/span><\/p>\n

New Proposed FED Rates<\/b><\/h3>\n\n\n\n\n\n
\n

Vehicle Category<\/b><\/p>\n<\/td>\n

\n

Proposed FED<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Imported Petrol Cars & SUVs (2,000cc\u20133,000cc)<\/span><\/p>\n<\/td>\n

\n

86%<\/span><\/p>\n<\/td>\n<\/tr>\n

Imported Petrol Cars & SUVs (Above 3,000cc)<\/span><\/td>\n\n

92%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

These rates are significantly higher than the earlier proposals of 40% and 41% respectively.<\/span><\/p>\n

Imported EV Tax Structure Remains Unchanged<\/b><\/h3>\n

For electric vehicles, the government has maintained the original Finance Bill proposal:<\/span><\/p>\n\n\n\n\n\n\n
\n

EV Value<\/b><\/p>\n<\/td>\n

\n

FED<\/b><\/p>\n<\/td>\n<\/tr>\n

Up to $75,000 (Approx. Rs 20.85 million)<\/span><\/td>\n0%<\/span><\/td>\n<\/tr>\n
$75,000\u2013$110,000 (Approx. Rs 20.85m\u2013Rs 30.58m)<\/span><\/td>\n30%<\/span><\/td>\n<\/tr>\n
Above $110,000 (Above Rs 30.58m)<\/span><\/td>\n40%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This approach suggests policymakers want to discourage luxury vehicle imports while still supporting broader EV adoption.<\/span><\/p>\n

Why Has the Government Increased Taxes on Imported Cars?<\/b><\/h2>\n

Pakistan’s automotive taxation has long been used as a tool for three major objectives:<\/span><\/p>\n

1. Protecting Local Manufacturing<\/b><\/h3>\n

Imported vehicles compete directly with locally assembled models. Higher duties make imports more expensive and provide breathing room for domestic assemblers.<\/span><\/p>\n

2. Reducing Pressure on Foreign Exchange<\/b><\/h3>\n

Vehicle imports consume substantial foreign currency reserves. Pakistan continues to face balance-of-payment challenges, making import management a fiscal priority.<\/span><\/p>\n

3. Increasing Tax Revenue<\/b><\/h3>\n

The federal government is under pressure to increase revenue collection. Luxury vehicles are often viewed as a segment capable of absorbing additional taxation.<\/span><\/p>\n

How Much More Expensive Could Imported Vehicles Become?<\/b><\/h2>\n

For high-end buyers, the increase could translate into millions of rupees in additional costs. <\/span>Consider an imported luxury SUV valued at Rs 30 million before taxes. An increase from around 40% duty levels to 86% or 92% could substantially raise the landed cost after customs duties, FED, registration charges, and associated import expenses.<\/span><\/p>\n

While exact figures depend on valuation and customs calculations, dealers expect many premium imported vehicles to experience noticeable price increases if the proposed structure becomes law.<\/span><\/p>\n

Impact on Pakistan’s Used Car Market<\/b><\/h2>\n

One of the less-discussed consequences may be pressure on the used imported vehicle market.<\/span><\/p>\n

When new imports become more expensive:<\/span><\/p>\n