How Much Import Duty on Car in Pakistan?

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Importing a car into Pakistan can be an exciting idea, especially if you’re considering options that might not be locally available or are of better quality and condition. However, bringing a car across borders involves understanding the associated import duties and customs requirements.

In Pakistan, these fees can add significantly to the cost of your vehicle. This article will help you understand the breakdown of import duty on cars in Pakistan and provide tips on using tools like a Pakistan import duty calculator or car custom duty calculator in Pakistan to estimate costs accurately.

Key Takeaway: The import duty on cars in Pakistan is based on several factors, including the car’s age, engine size, and type (used or new). Using an import duty calculator can help simplify the process, giving you a better understanding of the total cost involved.

How Much Import Duty Do You Pay on a Car in Pakistan?

The import duty on cars in Pakistan varies and is influenced by specific criteria set by the Pakistan Customs Authority. The main elements affecting import duty rates include:

Type of Vehicle: Cars, SUVs, electric vehicles, hybrids, and luxury cars each have different duty rates.
Engine Capacity: Engine size, usually measured in cubic centimeters (cc), is crucial in calculating import duty. Larger engines incur higher duty rates.
Vehicle Age: Generally, newer cars may have a lower rate, whereas older models often attract higher duties. Pakistan limits the import of used cars to specific age brackets.

Below, we’ll look at how these factors can impact the import duty you’ll be charged:

1. New vs. Used Cars

New Cars: For new vehicles, duties are generally lower, but the total cost can still be substantial when factoring in taxes and other fees.
Used Cars: Importing used cars is allowed, but these vehicles typically attract a higher duty. Pakistan currently permits the import of used cars up to 3 years old for personal use, and up to 5 years for certain vehicle categories.

2. Duty Rates Based on Engine Capacity (cc)

Up to 800cc: Cars with smaller engines (up to 800cc) attract lower duties, often making them the most economical option for import.
801cc to 1300cc: This category sees moderate duty rates, and vehicles with this capacity are quite popular in Pakistan.
1301cc to 1800cc: Import duty on vehicles with these engine sizes is significantly higher.

Above 1800cc: Luxury cars and SUVs in this category attract the highest import duties.

3. Additional Taxes and Charges

Besides the base import duty, several other charges are also applied, including:

Sales Tax: This tax is calculated on the car’s value after import duty is applied.

Income Tax: Depending on your tax status and residency, income tax may apply.
Federal Excise Duty (FED): FED rates vary based on the type of car.
Regulatory Duty: In certain cases, regulatory duty may apply to control the import volume of specific types of cars.

Estimating Your Import Duty with a Calculator

To simplify the complex calculation of duties, fees, and taxes, using a Pakistan import duty calculator or a car custom duty calculator in Pakistan can be highly beneficial. These tools allow you to input key information about your car (like engine size, model, year, and value) and instantly get an estimate of the total duties owed. This can give you a clearer picture of whether importing a specific car is within your budget.

Popular duty calculators are available online on websites like the Federal Board of Revenue (FBR) or third-party sites specializing in customs and imports. While these tools provide reliable estimates, consider consulting with a customs agent for precise calculations, especially for high-value cars.

Example of Duty Calculation

Here’s a sample duty calculation for a car with a 1300cc engine that’s three years old. Suppose the vehicle’s declared value is $10,000.

Basic Import Duty: 50% of the car’s value = $5,000
Sales Tax: 17% on the total of value + import duty
Income Tax: Varies depending on the tax rate

FED: Based on engine size (can be up to 10% for larger engines)
Regulatory Duty: As applicable for the vehicle category

With all these charges added, the total duty could reach 100% to 150% of the car’s declared value.

FAQs About Car Import Duty in Pakistan

1. What is the import duty on cars in Pakistan?

The import duty on cars in Pakistan varies based on factors like engine capacity, car type (new or used), and the car’s age. Smaller engine cars, like those under 800cc, generally have lower duties, while cars with larger engines or luxury features are subject to higher rates.

2. How does the engine capacity affect import duty in Pakistan?

Engine capacity, measured in cubic centimeters (cc), directly affects import duty rates. Cars with smaller engines (up to 800cc) incur lower rates, while cars with larger engines (over 1800cc) attract significantly higher duties.

3. Can I import a used car into Pakistan?

Yes, you can import a used car into Pakistan. The regulations allow importing used cars up to three years old for personal use and up to five years for some car categories. However, the duty rates for used cars are generally higher than for new cars.

4. What taxes are applied in addition to import duty?

Besides the basic import duty, there are additional taxes such as sales tax, income tax, federal excise duty (FED), and sometimes a regulatory duty. These taxes are based on the car’s value and can add up to a significant portion of the import cost.

5. How can I estimate import duty on my car?

You can use a Pakistan import duty calculator or car custom duty calculator in Pakistan available online. These tools allow you to enter details like the car’s engine capacity, year, and value to get an estimate of total duties.

6. What is the federal excise duty (FED) on cars in Pakistan?

The federal excise duty (FED) on cars in Pakistan varies depending on the engine size. Larger engines typically attract a higher FED rate, which is an added cost on top of the import duty and other taxes.

7. Are there exemptions on import duties for specific vehicles?

Yes, some exemptions apply to certain categories, such as electric vehicles or vehicles imported for government-approved projects. These exemptions, however, are limited and usually have strict requirements for eligibility.

8. Can overseas Pakistanis bring cars with lower duties?

Yes, under specific schemes like the Transfer of Residence, Gift, and Baggage Schemes, overseas Pakistanis can import cars with reduced duty rates. However, these schemes have particular criteria, and documentation is required to qualify.

9. Do electric cars have lower import duties?

Yes, Pakistan offers incentives for electric vehicles (EVs) to promote environmentally friendly options. EVs often attract lower duties compared to gasoline or diesel-powered vehicles, making them a potentially cost-effective import choice.

10. Can I use an import duty calculator for a 2024 car model?

Yes, you can use a car custom duty calculator in Pakistan to estimate duty for any recent model, including a 2024 car. Just input the necessary details like the car’s make, model, engine capacity, and value to get an accurate estimate.

Tools:

Import Duty Calculator Pakistan

Conclusion

Importing a car into Pakistan can be a viable option, especially if you’re looking for specific models or better quality. However, the import duty can be significant, often doubling the initial cost of the vehicle.

By understanding the duty structure and using tools like a car custom duty calculator in Pakistan, you can make an informed decision and better budget for the full cost.