Here is How to Calculate Custom Duty on Cars in Pakistan

Overview

The government of Pakistan charges custom duty against imported goods and customs duty is also applied on the imported cars. Customs duty is a source of government income. Every state sets its own rule regarding custom duty. In Pakistan’s vehicle, custom duty on is depended on the model make, engine power, and model type (gasoline or hybrid). Custom duty on other types of goods is depended on the weight and value of the products. Custom duty on cars depends on the vehicle you want to import. The government has provided relief on the import of hybrid vehicles.

The government has given a 50% discount on the customs duty of hybrid vehicles. In this article, we will provide you brief details about import duty on cars in Pakistan and how to calculate customs duty on cars in Pakistan. It is pertinent to mention here that there is no relief in customs duty for any person even government officials should also pay customs duty on cars. Only the disabled person can get duty-free imported vehicles.

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What is Cars Custom Duty?

Customs duty is an amount that should pay to make your vehicle legal to hit the road. Whether the vehicle is used or brand new custom duty is a compulsory amount. Without paying custom duty no one can get a vehicle from port. If any person uses a black way to import a vehicle he/she will face strict action from authorities. Cars custom duty is depended on:

Car make year
Engine power
Car type (a hybrid of gasoline)

You can check any vehicle custom duty by providing this information. The custom duty amount can be up or down because it depends on the dollar rate. Keep in your mind that sometimes due to increase dollar strength you will be paid an extra amount of custom that you calculate before import.

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Import Duty of Cars In Pakistan

As I already explain which information required to calculate customs duty, now I will explain to you how custom duty vary according to engine power

For 660cc to 800cc custom will be the same
From 801cc to 1000cc custom duty will be equal
From 1001 to 1300cc custom duty will be the same
From 1301cc to1500cc custom duty will be charged equal
From 1501cc to 1600cc custom duty will be the same
From 101cc to 1800cc there is no change in custom duty

Government exempt 50% off on import of hybrid vehicle up to 1800cc and above 1800cc to 2500cc there is 25% relief by the government for hybrid vehicle import. Hybrid vehicles are made with electric engine power and excellent for fuel efficiency.

Pakistan is including in the countries where the import of oil is very high. However, hybrid vehicles are efficient for fuel economy as well these are good for the environment. At the international level automakers consider electric vehicles as the future of the automotive industry and they highly focused on it.

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Vehicle Import Rules in Pakistan

Pakistanis consider in the 40 high-ranking countries that are import used vehicles from other countries in which Japan is top of the line. Before applied the SRO-52 (1) 2019 every year thousands of used vehicles had been imported into Pakistan. The biggest reason for the high import of used vehicles is these are available at cheap prices from Japan and excellent in performance as compared to the locally manufactured vehicles. Under the SRO-52 (1) 2019 government has applied 3 schemes for the import of used vehicles:

Personal Baggage
Gift Scheme
Transfer of Residence

Only the person who is under the above mention scheme can import a used vehicle. There is no restriction for brand new vehicle import. After the new scheme, the import of used cars falls. Thousands of vehicles stand at the Karachi port that is not cleared due to the new SRO.

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How To Calculate Custom Duty of Vehicles

You can calculate custom duty by yourself. For calculation, you should know about the vehicle make the year, engine capacity, and model type (hybrid or gasoline). Keep in mind that custom duty will be calculated on the current dollar rate and it may be changed at the time you will pay the duty of your vehicle. There are specific offices available in Karachi for paying customs duty. Authorities will never allow you to hit the road without paying duty and taxes on imported cars.

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Conclusion

Pakistan has set the vehicle age for import to maintain the vehicle standards in Pakistan. The old-age vehicles never perform better as like new. Although the prices of old used cars are very cheap it’s considered as the lowest in safety features. Pakistan’s vehicle import rules are very strict and the government has made used vehicle import rules strict to encourage the sale of locally manufactured vehicles.