Pakistan Car Import Duty Calculator

# Pakistan Car Import Duty Calculator: Schemes, Slabs & Depreciation

Importing passenger cars and SUVs into Pakistan is strictly regulated under the import policy framework maintained by the Ministry of Commerce and the Federal Board of Revenue (FBR). To protect domestic vehicle assemblers (such as Toyota, Honda, and Suzuki), commercial import of brand-new or used cars by regular trading entities is severely restricted. Instead, vehicle imports take place primarily through three designated legal schemes available exclusively to overseas Pakistanis: Personal Baggage, Gift Scheme, and Transfer of Residence (TR). Understanding fixed US dollar duty slabs, engine capacity brackets, age limitations, and depreciation rules is vital for calculating total import costs.

Eligible Import Schemes for Overseas Pakistanis

| Import Scheme | Target Overseas Group | Vehicle Age Limit (Passenger Cars) | Vehicle Age Limit (Commercial/SUVs) |

|---|---|---|---|

| Personal Baggage | Overseas Pakistanis staying abroad > 180 days | Maximum 3 Years Old | Maximum 5 Years Old |

| Gift Scheme | Remittance sent to immediate family in Pakistan | Maximum 3 Years Old | Maximum 5 Years Old |

| Transfer of Residence (TR) | Overseas Pakistanis permanently relocating | Maximum 3 Years Old | Maximum 5 Years Old |

Critical Age Rule: The age of a used vehicle is calculated strictly from the 1st day of January of the year of manufacture up to the date of filing the IGM manifest at the Pakistani port.

Fixed US Dollar Customs Duty Slabs for Used Cars

Under FBR SRO 577(I)/2005 (as amended), used passenger cars up to 1,800cc engine capacity are assessed duties using fixed US Dollar duty slabs, eliminating valuation disputes. Duties are converted to PKR at official State Bank of Pakistan exchange rates upon arrival:

| Engine Capacity Bracket | Fixed Base Duty Rate (USD) | Fixed Regulatory Duty (USD) | Total Fixed Duty Base (USD) |

|---|---|---|---|

| Up to 800cc | $4,400 USD | $1,000 USD | $5,400 USD |

| 801cc to 1,000cc | $5,500 USD | $1,200 USD | $6,700 USD |

| 1,001cc to 1,300cc | $11,000 USD | $2,200 USD | $13,200 USD |

| 1,301cc to 1,500cc | $15,400 USD | $3,100 USD | $18,500 USD |

| 1,501cc to 1,800cc | $18,700 USD | $4,300 USD | $23,000 USD |

| Above 1,800cc & SUVs | Ad-Valorem Duties Apply (100%–300%+ Duty & Taxes) | Ad-Valorem RD Applies | Ad-Valorem Assessment |

Used Car Duty Depreciation Rules

For used vehicles imported under Baggage, Gift, or TR schemes, the fixed USD duty amount is discounted based on vehicle age:

• Depreciation Rate: Duties are depreciated at the rate of 1.0% per month of vehicle age.
• Maximum Depreciation Cap: The cumulative depreciation allowance is legally capped at a maximum of 50.0% (reached at 50 months of age).

Depreciated Duty Payable (USD) = Fixed Duty Base (USD) × [100% - (Months of Age × 1%)]

Worked Calculation: 2024 Toyota Vitz (1,000cc, 24 Months Old)

Let us calculate the total customs duties and taxes payable for importing a 2-year-old 1,000cc Toyota Vitz under the Personal Baggage scheme to Karachi Port.

Vehicle Parameters:

• Engine Capacity: 996cc (1,000cc Slab)
• Vehicle Age: 24 Months
• SBP PKR Exchange Rate: 278.50 PKR per 1 USD
• Fixed USD Duty Base: $6,700.00 USD

Step-by-Step Calculation:

1. Calculate Age Depreciation Discount:

24 Months × 1.0% = 24.0% Depreciation Discount

1. Net Depreciated USD Duty Payable:

$6,700 × (100% - 24%) = $6,700 × 0.76 = $5,092.00 USD

1. Convert Duty to Pakistani Rupees (PKR):

$5,092.00 × 278.50 PKR = 1,418,122.00 PKR

1. Add Passport Clearance & Logistics Handling:

Passport Processing / Remittance Fee: ~150,000.00 PKR

KPT Port Terminal & Wharfage Charges: ~80,000.00 PKR

1. Total Out-of-Pocket Customs Duty & Border Cost:

1,418,122 + 150,000 + 80,000 = 1,648,122.00 PKR

Electric Vehicle (EV) Import Concessions

To promote green energy, the FBR offers significant duty reductions for imported Electric Vehicles:

• EVs with Battery ≤ 50 kWh: Basic Customs Duty reduced to 10.0% with 1% Sales Tax.
• EVs with Battery > 50 kWh: Basic Customs Duty assessed at 25.0% with standard Sales Tax.

How to Calculate Pakistan Car Duty in Our Tool

To calculate car import taxes for Pakistan:

1. Select the Import Scheme (Baggage, Gift, or TR).
2. Select the Engine Capacity Bracket (800cc, 1000cc, 1300cc, 1500cc, 1800cc, or SUV).
3. Input the Month and Year of Manufacture to automatically compute monthly 1% age depreciation up to 50%.
4. The tool outputs fixed USD duty, PKR conversion at official SBP rates, and port clearance estimates.

Frequently Asked Questions

Can a resident Pakistani purchase a car directly from Japan and import it?

No. Commercial imports of used cars by resident Pakistanis are illegal. The vehicle must be imported under the name of an eligible Overseas Pakistani using valid passport remittance proof under Baggage, Gift, or TR schemes.

How is the age of an imported car calculated by Pakistan Customs?

Age is calculated from January 1st of the manufacturing year to the date the vessel's IGM manifest is registered at the Pakistani port. For example, a car manufactured in March 2023 inspected in March 2026 is calculated as 36 months old.

What is the bank remittance requirement for the Gift Scheme?

Duties for vehicles imported under the Gift Scheme must be paid out of foreign exchange earnings remitted from abroad through official banking channels into the FBR customs e-payment account.

Are hybrid vehicles (HEVs) eligible for duty concessions?

Yes. Under current FBR policy, hybrid electric vehicles receive a 50% duty concession for engines up to 1,800cc, and a 25% duty concession for engines between 1,801cc and 2,500cc.

What happens if a car exceeds the 3-year age limit?

Vehicles exceeding the statutory 3-year age limit (36 months) for passenger cars are confiscated by Pakistan Customs at the port, with heavy redemption fines levied or mandatory re-export ordered.

Documentation Checklist for Baggage, Gift & TR Car Clearance

To successfully clear a used car through Pakistan Customs under foreign schemes, importers must present the following verified documents:

• Original Japanese Export Certificate (De-registration Certificate) with verified English translation.
• Foreign Passport Copy showing entry/exit stamps proving required overseas stay duration (>180 days).
• PRAL Foreign Remittance Certificate (FRC) proving customs duties were paid via foreign currency bank remittance.
• Baggage / Gift / TR Declaration Form signed by the overseas Pakistani applicant.
• NADRA CNIC Copy of the local Pakistani recipient (for Gift Scheme).

Bank Remittance Verification Rules for Overseas Pakistani Car Imports

To clear a used car under Personal Baggage, Gift, or Transfer of Residence schemes, the FBR enforces strict bank remittance verification:

• Encashment Certificate / PRAL Sync: Duties must be paid in PKR converted from foreign exchange remitted from abroad through official banking channels into the importer's or sponsor's Pakistani bank account.
• Prohibition of Domestic Local Payments: Paying customs duties using local cash funds or domestic credit cards is strictly prohibited and results in vehicle detention.
• State Bank Remittance Audit: Customs officers verify the Bank Encashment Certificate and Swift Messages against State Bank of Pakistan records prior to issuing gate passes.