The federal government has reduced the Regulatory Duty (RD) on the commercial import of used vehicles from 40% to 30%, effective from FY2026-27, as part of its ongoing tariff rationalisation strategy under the National Tariff Policy (NTP) 2025-30.

The reduction aligns with the government's five-year roadmap to gradually lower import tariffs and improve competitiveness across key sectors, including the automotive industry.

Under the National Tariff Policy, the government plans to reduce the weighted average tariff on the auto sector from over 10.7% to below 6% by 2030, supporting trade liberalisation and greater market efficiency.

As part of the second phase of the policy's implementation, the Federal Board of Revenue (FBR) issued a notification reducing the Regulatory Duty on commercial imports of used vehicles by another 10 percentage points.

The duty has been lowered progressively over the past two fiscal years. It stood at 50% before the implementation of the tariff reform programme, was reduced to 40% in FY2025-26, and has now been brought down to 30% for FY2026-27.

The latest reduction reflects the government's commitment to implementing structural tariff reforms while gradually aligning Pakistan's import regime with the targets outlined under the National Tariff Policy.