Federal government is expected to present a budget of approximately Rs18 trillion for the upcoming fiscal year, with nearly Rs2 trillion in new taxes
ISLAMABAD: (UrduPoint/Pakistan Point News-June 10th, 2025) The Federal government was considering reducing taxes on used car imports under the National Tariff Policy as part of the federal budget for the fiscal year 2025–26, which is being presented in the National Assembly (today), the sources said on Tuesday.
The sources said that the government proposed to the International Monetary Fund (IMF) a reduction in taxes on the import of used vehicles in a bid to make them more affordable for the public.
One of the key proposals includes allowing the import of cars up to five years old.
Additionally, the budget may include plans to gradually eliminate additional customs duties and reduce regulatory duties on vehicles. Reforms in the Fifth schedule of the Customs Act are also under consideration.
The proposed measures suggest no new regulatory duties be imposed on the auto sector and that tariffs on used vehicles be reduced by 10% annually. Furthermore, non-tariff barriers in the auto sector may be lifted, with a recommendation to bring the average tariff down to below 6% by the year 2030.
These initiatives are part of broader efforts to liberalize the automotive market, promote consumer choice, and align with IMF-backed economic reforms.
The federal government is expected to present a budget of approximately Rs18 trillion for the upcoming fiscal year, with nearly Rs2 trillion in new taxes.
