SED collection procedure for imported vehicles notified

ISLAMABAD: The government has reduced the additional customs duty (ADC) on import of inputs/raw materials and other items from July 1, 2026 and notified procedure for collection of the Special Excise Duty (SED) on imported vehicles.

The ADCs have been reduced from 6 to 4 percent; 4 to 2 percent and 2 to zero percent with the exception of retaining 2 percent ADC rate where customs duty rate is specific (zero percent and 5 percent).

From July 1, 2026, the Special Excise Duty (SED) would be collected on imported vehicles where Finance Act 2026 has imposed the SED at the import stage.

According to an SRO 1063(I)/2026 issued on Tuesday, in exercise of the powers conferred by sub-section (5) of section 18 of the customs Act, 1969 and in supersession of its Notification No. SRO 1151(l)/2025, the federal government has imposed additional customs duty on import of goods specified in the First Schedule to the Customs Act, at specified rates.

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Under SRO 1072(1)/2026, the Federal Board of Revenue (FBR) has prescribed that the Special Excise Duty leviable under the said sub-section on the goods specified in Table IA of the First Schedule to the Act shall be collected in the following manner:

In the case of goods imported into Pakistan, the Special Excise Duty shall be levied and collected in the same manner and at the same time as if it were a duty of customs payable under the Customs Act, 1969 and the provisions of the said Act, including section 31A thereof, shall apply mutatis mutandis.

This notification shall come into force from July 1, 2026, FBR added.

Copyright Business Recorder, 2026