Fact Check: Did the Government Really Impose an Additional 30% Duty on Imported Used Cars?

Following the announcement of Pakistan’s Budget 2026-27, social media posts and online discussions have claimed that the government has imposed an additional 30% duty on imported used cars. But the assertion has caused a problem among car fans, importers, and potential customers, as many of them thought the imported vehicles had suddenly become quite pricey.

Is this statement true or false?

In this fact check, we will look at what the government has actually announced, if a 30% duty has been introduced, if it is really a duty and not a new tax, and what this means for the import of used cars into Pakistan.

The Short Answer

No. The government's imposition of a new or extra 30% duty on imported used cars is a deceptive attempt to boost car sales.

The government, however, is proceeding with its plan to reduce tariff rates, and the increase in the Regulatory Duty (RD) for used vehicles sold commercially is being scaled down from 40% to 30%, not up.  

Why Are People Confused?

Confusion arises from the use of the term in some social media posts.

A lot of posts refer to a “30% extra duty", and the reader is led to believe that an additional 30% duty is imposed by the government on the existing import duty.

The 30% is not a new tax; however, it is the revised regulatory duty rate.

In simple terms:

•  A new 30% duty has been imposed (false).

The truth: As part of the government's phase-by-phase tariff overhaul, the existing extra regulatory duty has been lowered from 40% to 30% for commercial imports of used vehicles.  

What is the Government's Actual Announcement?

Pakistan's overall tariff rationalization strategy includes phasing out import protection over the next few years.

For used vehicles that are imported for commercial purposes:

• The extra regulatory duty will be cut by 10% to 30%.
• This duty will continue to be reduced in the future years until it is removed.  
• This simply refers to reducing rather than raising this particular burden.

Understanding Regulatory Duty

A Regulatory Duty (RD) is a tax imposed by the government on top of customs duty on specific imports.

It has a variety of uses, such as:

• Protect local industries.
• Regulate imports.
• Control the country's import bill.
• Encourage domestic manufacturing.

However, the 30% regulatory duty is not a new tax; it is the updated tax rate for an existing duty in the government's tax reform plan.  

Did Budget 2026-27 Increase Duties on Imported Cars?

It depends on the kind of vehicle and the taxes that are applicable.

Changes to import duty on various classes of vehicles were brought in under the Finance Bill. In fact, several times, duties on imports were cut rather than raised, as part of tariff reform.  

So the statement of “all imported used cars now have to pay an additional 30% duty” is misleading.

What Does This Mean for Used Car Buyers?

The clarification is significant for those consumers who intend to import a used car in Pakistan.

It means:

1. No new surcharge is being imposed just due to the new budget; it is just a 30% increase on the existing surcharge.

2. The import cost will still be subject to customs duty, tax, sales tax, and federal excise duty (if applicable) and the applicable regulatory duty.

3. The landed cost should be determined by the most recent customs and tax schedules, not by viral claims on social media.

Why Accurate Information Matters

The process of importing vehicles in Pakistan already has multiple taxes and duties. Buyers can get the wrong idea about one component, for instance, regulatory duty, resulting in the impression that prices have increased by much more than they have.

Buyers should always check their facts on official budget documents, customs notifications, or trusted automotive news sites before making financial decisions.

Final Verdict

The statement is false.

The Government of Pakistan has NOT imposed an additional duty of 30% on used cars.

Rather, the current additional regulatory duty on commercial vehicle imports has been reduced from 40% to 30% as part of the country's current tariff reform policy. The claim that a new 30% levy has been imposed is incorrect, although it is possible that other taxes and duties could apply depending on the type of vehicle.  

FAQs

Has Pakistan imposed a new tax of 30% on used cars?

No. The government has not imposed a new extra 30% duty. This 30% is the new regulatory duty rate as part of the tariff reform plan.  

Was the previous regulatory duty greater?

Yes. The extra regulatory costs for commercial imports of used vehicles were 40% and have been lowered to 30%.  

Will the price for imported used cars go down?

The decrease in regulatory duty will decrease one element of the import cost, but this cost will still include customs duty, taxes, exchange rates, shipping costs and other applicable costs.

What is the reason for the claim that there is a new 30% duty?

The problem is that the 30% regulatory duty seemed to be an extra, new tax, but that is not the case; it is actually a fee, as suggested by misleading social media posts.

Is it advisable to trust social media at all for import duty information?

Changes must always be confirmed from official government notifications, the Finance Bill, Pakistan Customs, or any trusted automotive journal before buyers make their purchase.