Pakistan's car import duty structure changed on 1 July 2026, and the difference is not small. The amended Finance Bill 2026-27 cut customs duty on imported vehicles across every engine category, in some cases by 30 percentage points. At the same time, the government added a new Special Excise Duty on large-engine cars, which means not everything got cheaper. If you have been waiting to import a car from Japan to Pakistan, the model you choose now matters more than it did last year.
The savings are concentrated in one part of the market, and the increases are concentrated in another.
This guide breaks down exactly which Japanese used cars in Pakistan became more affordable, which did not, and what the duty reduction on cars Pakistan buyers are reading about actually means at the port.
The amended Finance Bill 2026-27 was passed by the National Assembly in late June and came into force on 1 July 2026. It reduced Customs Duty (CD) on imported vehicles in every engine bracket, trimmed Additional Customs Duty (ACD) from 6% to 4% where it applies, and halved Regulatory Duty (RD) on the 1801cc and above categories from 50% to 20%.
Here is the before-and-after on the headline car import tax Pakistan rates:
| Engine size | Old CD | New CD | Old RD | New RD | Old ACD | New ACD |
|---|---|---|---|---|---|---|
| Up to 800cc | 50% | 30% | 0% | 0% | 0% | 0% |
| 801–1000cc | 55% | 35% | 0% | 0% | 0% | 0% |
| 1001–1300cc | 60% | 40% | 0% | 0% | 0% | 0% |
| 1301–1500cc | 60% | 40% | 10% | 10% | 6% | 4% |
| 1501–1600cc | 75% | 45% | 10% | 10% | 6% | 4% |
| 1601–1800cc | 75% | 45% | 10% | 10% | 6% | 4% |
| 1801–2000cc | 100% | 50% | 50% | 20% | 6% | 4% |
| 2001–3000cc | 100% | 50% | 50% | 20% | 6% | 4% |
The catch sits in the last row. Cars above 2000cc now attract a new Special Excise Duty of 86%, rising to 92% above 3000cc. That single line changes the entire picture for large SUVs and vans.
The smallest cars saw customs duty drop by 20 percentage points, from 50% to 30% on vehicles up to 800cc and from 55% to 35% on the 801–1000cc bracket. Neither band carries regulatory duty or additional customs duty, so the cut flows almost directly into the landed price.
This is the sweet spot for the Suzuki Alto, Daihatsu Mira, Honda N-Box, Nissan Dayz, Toyota Passo, and Nissan March. These are the affordable Japanese cars Pakistan buyers already know from the used market, and they are now meaningfully cheaper to bring in legally. For first-time buyers and city commuters, the case for importing rather than buying locally assembled has never been stronger.
Customs duty in the 1001–1300cc band fell from 60% to 40%, with no RD or ACD applied. Federal Excise Duty stays at 5%.
This bracket covers the Toyota Vitz, Honda Fit 1300, Suzuki Swift 1200, Nissan Note, and Toyota Belta. These models have always been the volume sellers among imported Japanese cars Pakistan buyers choose, because they balance running costs against everyday usability. A 20-point cut on a car in this price range translates into a substantial reduction once you convert it against the assessed value. If you have been comparing Japanese car prices in Pakistan against local options, this is the band where the gap narrowed most visibly.
Customs duty here dropped from 60% to 40% and additional customs duty came down from 6% to 4%. Regulatory duty stays at 10% and FED at 10%.
This is where the hybrids live: the Toyota Aqua, Honda Fit Hybrid, Toyota Yaris, Corolla Axio and Fielder Hybrid, Honda Vezel 1500, and Toyota Sienta. Fuel economy has been the main reason Pakistani buyers import these cars, and a lower duty burden shortens the payback period considerably. Combined cumulative rates in this bracket moved from roughly 86% to around 64%, which is the difference between hesitating and placing a bid.
The biggest cuts landed here. Customs duty on 1501–1800cc vehicles fell from 75% to 45%, a 30-point reduction. For the 1801–2000cc bracket, customs duty was halved from 100% to 50% and regulatory duty dropped from 50% to 20%.
That covers the Toyota Prius, Toyota C-HR, Honda Stream, Toyota Wish, Toyota Noah and Voxy, Nissan Serena, Toyota Harrier 2.0, Subaru Forester 2.0, and Toyota RAV4 2.0. Cumulative headline rates on the 1801–2000cc band fell from roughly 186% to around 104%. In absolute rupee terms, this is the single largest saving available anywhere in the new structure. Families who ruled out a seven-seater MPV last year should run the numbers again.
This is the part most coverage of the Pakistan vehicle import policy has underplayed. Customs duty on the 2001–3000cc band was halved, but the government simultaneously introduced a Special Excise Duty of 86% on imported petrol cars and SUVs between 2000cc and 3000cc, and 92% on anything above 3000cc.
Once that is layered in, the cumulative burden on this category is broadly unchanged or slightly higher than before. The Toyota Land Cruiser Prado, Alphard and Vellfire 2.5, Toyota Hiace 2.8, Harrier 2.4, and Land Cruiser 200 all sit in this territory.
Imported electric vehicles were also restructured. EVs assessed up to $75,000 remain at 25% customs duty with no FED. Above that threshold, customs duty is 30% but FED of 30% or 40% now applies depending on value. Luxury EVs are more expensive to import than they were.
The rule of thumb: under 2000cc, you save. Over 2000cc, you do not.
Duty rates are only half the story. Two other changes affect anyone planning to import cars from Japan to Pakistan this year.
First, the regulatory duty on commercial used car imports dropped from 40% to 30% for FY2026-27, and it is scheduled to fall by 10 percentage points each year until it reaches zero by FY2030. Every year you wait, the number gets smaller, but so does the supply advantage of moving early.
Second, the five-year age restriction on commercial used vehicle imports was lifted from July 2026. Vehicles must still meet environmental and safety standards, with pre-shipment inspection handled by approved firms in Japan, but the calendar limit is gone. That opens up a far wider range of stock than Pakistani buyers have had access to in over a decade.
Separately, the Personal Baggage scheme was abolished in January 2026. Only the Gift and Transfer of Residence schemes remain for personal imports, the waiting period between imports rose from 700 to 850 days, and a one-year resale restriction now applies.
Three practical takeaways.
Pick your engine size deliberately. The duty structure now rewards anything under 2000cc and penalises anything above it. A 1.8-litre Harrier and a 2.4-litre Harrier are no longer close on landed cost.
Get an assessed-value estimate before you bid. Headline duty percentages are calculated on customs-assessed value, not your purchase price, and sales tax, income tax and withholding sit on top. A proper quote beats a percentage table every time.
Verify condition before shipping, not after. With the age limit removed, older stock is entering the market. An auction sheet grade and a genuine mileage record now matter more than they did when everything was capped at five years.
Q1. How much is car import duty in Pakistan in 2026?
It depends on engine size. Customs duty ranges from 30% on cars up to 800cc to 50% on cars between 1801cc and 3000cc, with regulatory duty, additional customs duty and excise duty applied on top of that.
Q2. Which Japanese cars are cheapest to import to Pakistan now?
Kei cars and small hatchbacks under 1000cc carry the lowest duty burden. The Suzuki Alto, Daihatsu Mira, Toyota Passo and Nissan March are the most affordable Japanese cars Pakistan buyers can import today.
Q3. Did the duty cuts on cars Pakistan announced apply to all vehicles?
No. Cars under 2000cc benefited from genuine reductions. Vehicles above 2000cc had customs duty halved but now face a new Special Excise Duty of 86%, so their total cost did not fall.
Q4. Can I still import a car older than five years to Pakistan?
Yes. The five-year age limit on commercial used vehicle imports was removed from July 2026. Vehicles must still meet environmental and safety standards and pass pre-shipment inspection.
Q5. What is the regulatory duty on used cars in Pakistan?
Commercial used car imports carry a 30% regulatory duty for FY2026-27, reduced from 40%. It is scheduled to decrease by 10 percentage points annually until it reaches zero by FY2030.
Import Your Japanese Car While the Rates Are Down
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