FBR cuts SUV regulatory duty to 20%, adds 30% levy on used vehicle imports

The Federal Board of Revenue (FBR) has reduced regulatory duty on sport utility vehicles (SUVs) and all-terrain vehicles from 50% to 20%, while imposing an additional 30% regulatory duty on commercial imports of used vehicles from July 1, 2026.

The changes were notified through SRO 1064(I)/2026 and SRO 1065(I)/2026 issued on Tuesday.

Under SRO 1064(I)/2026, which replaces SRO 1152(I)/2025, regulatory duty on SUVs of 1,800cc and above and all-terrain vehicles has been cut from 50% to 20%.

The notification also reduces duty on smaller-engine SUVs below 1,800cc and completely built-up (CBU) vehicles, generally from 10% to 8%.

Separately, through SRO 1065(I)/2026, the federal government has imposed 30% additional regulatory duty on commercial imports of used vehicles.

The duty will apply to used vehicles falling under PCT Headings 8702, 8703 and 8704 of the First Schedule to the Customs Act, 1969.

According to the notification, the levy applies to vehicles imported under clause (xvi) of Serial No. 10 of the Table of Appendix-C of the Import Policy Order, 2022, subject to the conditions stated in the order.

The FBR said the additional 30% regulatory duty under SRO 1065(I)/2026 will be charged in addition to the regulatory duty already levied under SRO 1064(I)/2026 dated June 30, 2026.

SRO 1065(I)/2026 supersedes Notification No. SRO 1898(I)/2025.