July 14, 2026

Vehicle Import Duty Reduction: Commerce Ministry Proposes Sweeping Engine Tariff Cuts Across All Slabs

ISLAMABAD — In a major development expected to dramatically shake up the domestic auto market, the Ministry of Commerce has briefed the parliamentary finance panel on a comprehensive plan to rationalize import duties across multiple vehicle engine capacities. Under the newly tabled framework, total cumulative duties and taxes on standard 1800cc cars will plummet from 156% down to 74%, while mid-tier 1000cc to 1500cc vehicles will see a sharp drop from 76% to 52%. Entry-level vehicles up to 850cc and standard motorcycles are scheduled for a duty slash down to 30%, accompanied by a parallel 10% reduction on imported auto components to drastically lower the operational cost of doing business for local auto plants.

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