Imported cars in Pakistan are expected to cost more after the FBR changed valuation rules, raising questions about when the policy takes effect and whether it applies to older vehicles.
WEBDESK – MediaBites/ TechJuice – January 27, 2026
Imported vehicles in Pakistan are set to become more expensive after the Federal Board of Revenue (FBR) introduced new valuation rules that tighten how customs duties and taxes are calculated — a move likely to hit buyers already struggling with soaring car prices.
Under a Customs General Order issued on January 26, the FBR has revised the vehicle valuation framework that had been in place since 2005. The new rules significantly change how the customs value of imported cars is determined, effectively increasing the tax burden on importers.
What Has Changed?
Previously, importers could declare vehicle values based on:
-
Certificates issued by local authorized agents, or
-
The commonly used Asian Trust Price (ATP)
These methods often resulted in lower declared values, reducing customs duty and taxes.
Under the new rules, the FBR has removed the role of local authorized agents from the valuation process. Customs officials will now assess vehicle values primarily on the Manufacturer’s Suggested Retail Price (MSRP) set by the original manufacturer, which is typically higher than ATP-based valuations.
Industry insiders say this closes a long-standing loophole that allowed under-invoicing and price manipulation.
When Will This Be Implemented?
The revised valuation mechanism takes effect immediately from the date of notification — January 26, 2026. Any vehicle cleared through customs after this date will be assessed under the new rules.
Will It Apply to Old or Used Cars?
Yes — the rules apply to both new and used imported vehicles.
However, the impact may vary:
-
New cars will be directly valued using the manufacturer’s MSRP
-
Used cars will still factor in depreciation, but the base value will now be higher, leading to increased duties even after depreciation adjustments
Vehicles already cleared through customs before January 26 will not be affected.
What Does This Mean for Buyers?
For consumers, the change is expected to translate into higher showroom prices, as importers are likely to pass on the additional tax burden. This comes at a time when locally assembled vehicles are already expensive, pushing many buyers toward imported options.
While the government argues the move will improve transparency, reduce disputes, and boost revenue, critics warn it could further limit affordability — especially for middle-class buyers who rely on imported cars due to limited local choices.
For now, one thing is clear: imported cars just got more expensive — and there’s little room left to absorb the shock.
Who will be affected most?
Small and mid-level importers:
Importers who relied on agent-issued price certificates or Asian Trust Prices will face higher duties, shrinking margins or forcing price hikes.
Middle-class buyers:
Consumers turning to imported used cars due to unaffordable local models are likely to feel the sharpest price impact at dealerships.
Used-car import market:
Although depreciation still applies, the higher base MSRP will increase taxes even on older vehicles, pushing up final prices.
Luxury and high-end buyers:
Premium imports will see the steepest absolute increases, as duties will now be calculated on higher manufacturer-set prices.
Late clearances:
Vehicles cleared after January 26, 2026, will be taxed under the new system, while those cleared earlier remain unaffected.
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