- Imported vehicle duty rates revised from July.
- FBR notice violations will draw heavy fines.
- Electronic tax returns made mandatory through Iris.
The National Assembly has approved Budget 2026-27, with the Finance Bill outlining revised duties on imported vehicles, stricter Federal Board of Revenue (FBR) compliance rules and electronic filing requirements.
According to the Finance Bill 2026-27, from July 1, imported vehicles from 2,000cc to 3,000cc will face 86% duty, while 3,001cc imported vehicles will be subject to 92% duty.
Duties and taxes on 1,800cc vehicles will be reduced from 156% to 74%, while the duty rate on vehicles above 1,500cc is being cut from 91% to 57%.
The Finance Bill says duties and taxes on imported vehicles from 1,000cc to 1,500cc will be reduced from 76% to 52%. Duty on 850cc imported vehicles will be brought down from 66% to 42%.
Under the new auto policy, special excise duty will not be imposed on vehicles up to 1,800cc.
The bill also proposes customs duty of 30% to 40% on the import of large electric vehicles. From July 1, imported EVs valued up to $75,000 will face 30% duty, while EVs valued above $110,000 will be subject to 40% customs duty.
A concessional sales tax of 10% will be imposed on children’s pencils, pens and sharpeners.
From July 1, a one-time fixed tax of Rs10,000 will be imposed in the federal jurisdiction on vehicles up to 1,000cc. Token tax on pre-2010 models of vehicles up to 1,000cc will be Rs20,000.
This is a developing story and will be updated with more details.
