ISLAMABAD: Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister of Pakistan on Commerce, conducted a meeting with Patron in Chief, Chairman and representatives of the All-Pakistan Car Dealers & Importers Association (APCDIA) to strengthen collaboration between the private and government stakeholders.
The meeting took place in light of the government’s decision to allow import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26).
The APCDIA, while appreciating the government’s plans to allow import of commercial vehicles via amendments to the Import Policy Order, maintained that consultations with the Association could lead to formulation of a well-rounded policy for import of commercial vehicles.
Import of up to 5-year-old used vehicles allowed with 40% extra tariff
Rana Ihsaan Afzal Khan assured the Association that the Ministry of Commerce is alive to its responsibilities in conducting stakeholder consultations and invited tangible proposals from the Association for incorporation in the updated Import Policy Order, which is expected to be issued after September, 2025.
Last week during review of Finance Bill (2025-26) Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis can continue to import three-year-old vehicles under baggage scheme.
The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed.
However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country.
However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five-year old vehicles under the baggage scheme. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles.
Copyright Business Recorder, 2025
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