Relief for Importers as 660cc Cars to see up to Rs2.5 Lac Duty Cut
Why this matters: local context for readers following news across Pakistan and the region.
ISLAMABAD – The proposed Finance Bill 2026 offers major tax relief for importers by cutting customs duty on imported vehicles with engine capacities of up to 800cc from 50% to 30%. The move could lower customs duties on popular 660cc Japanese cars by up to Rs2.5 Lac, making imports more affordable and providing boost to Pakistan’s small-car market. The biggest relief comes for 660cc segment, which remains one of highest-demand categories among Pakistani buyers due to its affordability and fuel efficiency. Under the proposed tax changes, imported vehicles with engine capacities of up to 800cc will see customs duty reduced from 50% to 30%, representing a 20-percentage-point cut. Category Old Customs Duty Proposed Customs Duty Diff. Imported 800cc vehicles 50% 30% 20pc The lower customs duty is expected to reduce the overall cost of importing these vehicles, although the final retail price will also depend on exchange rates, freight charges, and other applicable taxes and fees. 660cc Models Price Cut Model Estimated Price Cut Nissan DayZ Highway Star X (2023) Around Rs. 250,000 Daihatsu Mira LA350S (2023) Around Rs. 250,000 Suzuki Jimny Grade XC (2021) Around Rs. 170,000 The proposed reduction could improve affordability for importers and consumers alike, particularly in a market where compact Japanese vehicles continue to attract strong demand. The customs duty relief is not limited to the 660cc category. Imported 1,000cc vehicles are also covered under the proposed revisions, paving the way for lower import costs across another high-volume segment. Popular models expected to benefit include the Toyota Raize, Daihatsu Rocky, Toyota Vitz, and Toyota Passo, all of which have established a strong presence in Pakistan’s imported car market. This is said to be one of most major reductions in customs duties on small imported vehicles in recent years. The move is expected to lower the cost of importing popular Japanese cars, potentially boosting market activity a