The Pakistan Car Import Duty Calculator is a tool designed to help individuals and businesses estimate the import duties and taxes on vehicles being brought into Pakistan. By simply entering key details like the car’s value, type, and specifications, users can quickly determine the applicable import duties, taxes, and additional costs involved in the importation process. This calculator streamlines the complex process of vehicle importation and ensures you have an accurate estimate of the financial obligations, helping you make informed decisions.
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How to Calculate Pakistan Car Import Duty
Pakistan Car Import Duty Calculator
Complete Guide to Pakistan Car Import Duty: Schemes, Exemptions & Requirements
Introduction
Importing vehicles into Pakistan is governed by specific regulations that determine the duties and taxes payable based on various factors including the vehicle type, age, and import scheme. This comprehensive guide outlines the different ways vehicles can be imported into Pakistan, the applicable duties and taxes, and special exemptions available for certain categories of importers and vehicles.
Import of New Vehicles
New vehicles can be freely imported into Pakistan by anyone, provided they pay all applicable duties and taxes according to the prevailing Import Policy Order and Customs law. The process follows standard import procedures without special restrictions beyond regular customs requirements.
Personal Baggage, Transfer of Residence, and Gift Schemes
Used vehicles cannot be imported through regular import channels. However, the law provides exceptions through three special schemes designed primarily for overseas Pakistanis:
Eligibility Requirements
- Who Can Import: Pakistani nationals residing abroad, including dual nationals and foreign nationals of Indo-Pakistani origin holding a Pakistani Origin Card. Minors (under 18 years) are not eligible.
- Frequency Restriction: Vehicles can be imported once every two years (calculated as 700 days from the date of filing the last Goods Declaration).
- Student Exclusion: Students receiving remittances from Pakistan and non-earning family members of Pakistani nationals are not eligible.
Types of Vehicles Allowed Under Each Scheme
- Transfer of Residence Scheme:
- Passenger cars, buses, vans, trucks, pick-ups (including 4×4 vehicles)
- Agricultural tractors, bulldozers, laser land levelers, combined harvesters
- Motorcycles and scooters
- Gift Scheme:
- Passenger cars, buses, vans, trucks, pick-ups (including 4×4 vehicles)
- Agricultural tractors, bulldozers, laser land levelers, combined harvesters
- Personal Baggage Scheme:
- Passenger cars, buses, vans, trucks, pick-ups (including 4×4 vehicles)
- Agricultural tractors, bulldozers, laser land levelers, combined harvesters
Age Restrictions
- Cars must not be more than three years old (since year of manufacturing)
- Other vehicles must not be more than five years old (since year of manufacturing)
- Age is calculated from January 1st of the year after manufacture until the shipment date
Stay Requirements
- Transfer of Residence & Gift Scheme:
- Minimum 700 days stay outside Pakistan during the past three years
- Personal Baggage Scheme:
- Minimum 180 days stay outside Pakistan during the last seven months preceding application date
Gift Scheme Specific Requirements
- Vehicles can only be gifted to a family member normally resident in Pakistan
- “Family” includes parents, siblings, spouse, and children (except those under 18 years of age)
Required Documentation
- Transfer of Residence Scheme:
- Goods Declaration
- Export Certificate
- Purchase receipt of the vehicle
- Bill of lading (dated not later than 120 days from the date of arrival in Pakistan)
- Attested photocopy of passport or Pakistan Origin Card (original required at clearance)
- Gift Scheme:
- Goods Declaration
- Export Certificate
- Purchase receipt of the vehicle
- Bill of lading showing name and address of the consignee
- Attested photocopy of passport or Pakistan Origin Card
- CNIC of the donee (recipient)
- Personal Baggage Scheme:
- Goods Declaration
- Export Certificate
- Purchase receipt of the vehicle
- Bill of lading (dated not later than 120 days from the date of arrival in Pakistan)
- Attested photocopy of passport or Pakistan Origin Card (original required at clearance)
Payment of Duties and Taxes
For all vehicles imported under these schemes, the duties and taxes must be paid through foreign exchange arranged by:
- The Pakistani national sending the vehicle from abroad, or
- The local recipient (with bank encashment certificate showing conversion of foreign remittance to local currency)
The remittance must originate from the account of the Pakistani national sending the vehicle or, if their account is nonexistent or inoperative, from a family member’s account.
Special Exemptions and Benefits
1. Old and Used Asian-Make Automotive Vehicles (S.R.O. 577(I)/2005)
Specific fixed duty and tax rates apply to old and used Asian-make vehicles meant for passenger transport:
Engine Capacity | Fixed Duty and Taxes |
---|---|
Up to 800cc | US$ 4,800 |
801-1000cc | US$ 6,000 |
1001-1300cc | US$ 13,200 |
1301-1500cc | US$ 18,590 |
1501-1600cc | US$ 22,550 |
1601-1800cc | US$ 27,940 |
These rates apply regardless of the vehicle’s physical condition, with no discretionary powers for customs officers to adjust these amounts.
2. Hybrid Electric Vehicles (S.R.O. 499(I)/2013)
Hybrid Electric Vehicles (HEVs) enjoy significant concessions:
Engine Capacity | Concession on Duty and Taxes |
---|---|
Up to 1800cc | 50% |
From 1801cc to 2500cc | 25% |
3. New Motor Cars for Disabled Persons (S.R.O. 277(I)/2010)
Disabled persons can import duty-free new motor cars subject to specific conditions:
- Engine capacity must not exceed 1350cc
- Vehicle must be fitted with special gadgets to compensate for disability
- Import authorization certificate must be issued by the Ministry of Commerce
- Only one car is allowed per disabled person
- The car cannot be sold or transferred before five years from arrival date
Eligibility for Disabled Persons
To qualify, the disabled person must:
- Have a physical disability (excluding mental disabilities and old-age disability)
- Be fit to drive with special gadgets that overcome their disability
- Possess a valid driving license
- Have a monthly verifiable personal income between Rs. 20,000 and Rs. 100,000
- Not have imported a duty-free car or purchased a locally manufactured car at concessional rates in the last five years
Application Process
- Submit application to the Provincial Health Department with required documents
- Appear before a Provincial Committee chaired by the Provincial Health Secretary
- Upon approval, Ministry of Commerce issues Import Authorization valid for one year
- Import the vehicle and provide import and registration documents within three months
4. Electric Vehicles (S.R.O. 644(I)/2018)
Electric vehicles (Completely Built-Up Units) for passenger transport enjoy reduced customs duty:
- Only 25% ad valorem customs duty applies (exemption from excess amounts)
Determination of Customs Value and Assessment
The following procedure is applied uniformly across all customs stations:
- FOB Value Determination:
- FOB value at time of manufacture as certified by manufacturers or authorized agents is accepted
- For domestic models without FOB values, export model values of similar vehicles are loaded by 5% on C&F value
- Additional Charges:
- Local agent’s commission and incidental charges are added if not included
- Actual ocean/air freight from the country of manufacture
- Actual insurance amount or 1% of C&F value if insurance memo is unavailable
- Landing charges at 1% of total CIF value
- Optional Accessories:
- Value of optional/additional accessories is included in the assessable value
- Subject to duty and taxes applicable to the vehicle in which they are fitted
- Depreciation Allowance for Used Vehicles:
- Standard rate: 2% per completed month, maximum 50%
- Cars under PCT heading 87.03: 1% per completed month, maximum 60%
- Trucks, agricultural tractors, buses, and vans: 2% per completed month, maximum 60%
Non-Privileged Foreign Nationals
Foreign nationals coming to Pakistan on specific contracts with local or foreign firms, or with government/semi-government authorities, can bring a car as personal baggage.
Re-Export Provisions
If a vehicle is imported in contravention of regulations, re-export may be permitted except in cases of:
- Stolen vehicles
- Chassis-tampered vehicles
- Vehicles with fake or forged documents
Conclusion
Importing vehicles into Pakistan involves navigating complex regulations that vary based on the type of vehicle, importer status, and chosen import scheme. Understanding these rules and exemptions can help importers determine the most cost-effective and legally compliant approach to bringing vehicles into the country.
For the most current information, prospective importers should consult the Federal Board of Revenue (FBR) or a customs agent, as regulations and duty rates may change over time.
FAQs: How to Calculate Customs Duty in Pakistan?
To calculate customs duty in Pakistan, follow these steps:
- Determine the Vehicle’s Value: Customs duty is based on the vehicle’s assessed value. This is often the CIF (Cost, Insurance, and Freight) value.
- Apply the Customs Duty Rate: Use the applicable customs duty rate for the specific type of vehicle or item.
- Add Other Duties and Taxes: Include additional duties like sales tax, federal excise duty (FED), income tax, and any other relevant charges.
- Calculate the Total: Sum all duties and taxes to get the total customs duty.
For accurate calculations, you can use our online Pakistan car duty calculator.
How Much Import Duty on Car in Pakistan?
The import duty on cars in Pakistan varies depending on the engine capacity (CC) and whether the car is new or used. Here’s a general overview:
- Up to 800cc: Approximately 50% of the vehicle’s value.
- 801cc to 1000cc: Around 55% to 60%.
- 1001cc to 1300cc: Approximately 65% to 75%.
- 1301cc to 1500cc: About 85%.
- Above 1500cc: Can exceed 100%.
Additional taxes, like sales tax (17%), income tax (up to 6%), and FED, may apply. For more details, check here.
What is the Import Duty on Auto Parts in Pakistan?
Import duty on auto parts in Pakistan varies depending on the part and its classification:
- General Auto Parts: Around 15% to 35%.
- Special Auto Parts: Higher rates may apply, especially for luxury or specialized components.
Additional taxes like sales tax and income tax also apply. For more details, check out article about the import duty on auto cars in Pakistan.
How to Import a Car in Pakistan?
To import a car into Pakistan, follow these steps:
- Check Eligibility: Ensure you meet the requirements under personal baggage, gift scheme, or transfer of residence.
- Choose the Right Car: Verify the car’s eligibility for import.
- Complete Documentation: Gather necessary documents, including the Bill of Lading, purchase invoice, passport, and any applicable proof of residence.
- Pay Duties and Taxes: Calculate and pay the necessary customs duties and taxes.
- Customs Clearance: The car will be inspected and cleared by customs at the port.
Why Are Imported Cars So Expensive in Pakistan?
Imported cars in Pakistan are expensive due to several factors:
- High Customs Duty and Taxes: The combined effect of customs duty, sales tax, FED, and income tax significantly increases the cost.
- Currency Fluctuations: The devaluation of the Pakistani rupee against the dollar raises the CIF value of the car.
- Limited Supply: High demand for imported cars and limited supply drive prices up.
- Shipping and Handling Costs: These costs further add to the price of the car.
How to Pay Car Customs in Pakistan?
To pay car customs in Pakistan:
- Visit a National Bank of Pakistan (NBP) Branch: Customs duty payments are made through designated NBP branches.
- Fill Out the GD Form: Complete the Goods Declaration (GD) form with all required information.
- Submit Documents: Provide necessary documents, including the Bill of Lading, invoice, and ID.
- Pay the Duty: Pay the calculated duty amount at the bank.
- Obtain the Payment Receipt: Keep this for your records and for customs clearance.
Who Can Import Duty-Free Car in Pakistan?
Duty-free car imports in Pakistan are allowed under specific conditions:
- Diplomats: Foreign diplomats can import cars duty-free.
- Disabled Persons: Approved disabled persons may import specially designed vehicles duty-free.
- Expatriates: Under specific schemes, expatriates may import cars with certain concessions.
Can Overseas Pakistani Bring a Car to Pakistan?
Yes, overseas Pakistanis can bring a car to Pakistan under the following schemes:
- Personal Baggage Scheme
- Gift Scheme
- Transfer of Residence Scheme
Each scheme has specific eligibility criteria, and cars brought under these schemes are subject to customs duties and taxes.
What is the FBR Policy for Car Import in Pakistan?
The FBR policy for car import in Pakistan includes:
- Personal Baggage, Gift, and Transfer of Residence Schemes: These schemes allow overseas Pakistanis to import used cars under specific conditions.
- Restrictions on Vehicle Age: The maximum allowable age of used cars for import is three years for personal baggage and gift schemes.
- Payment of Duties: Duties and taxes must be paid in foreign exchange provided by the importer or their immediate family member.
How Much Does It Cost to Import a Car to Pakistan?
The cost of importing a car to Pakistan includes:
- Customs Duty: Based on the car’s value and engine capacity.
- Sales Tax (17%): Applied on the customs value.
- Income Tax (Up to 6%): Depending on the value of the car.
- Federal Excise Duty (FED): Varies depending on the engine capacity.
- Other Charges: Including shipping, handling, and port charges.
The total cost can be significant, often doubling the car’s original price due to these additional charges.
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