Govt rules out tax reversal on car imports
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In a bid to regulate the used car market and uphold quality standards, the government has decided not to reverse existing taxes on car imports and will introduce mandatory registration and certification procedures for used imported vehicles.
These measures were communicated during a meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan with the Car Dealers and Importers Association in Islamabad.
As per an official statement, the discussions focused on key areas including the upcoming Auto Policy 2026, import and export issues, and additional customs duties.
The PM's aide recognised the Car Dealers and Importers Association as a vital stakeholder in the consultation process for policy formulation. He reiterated that Prime Minister Shehbaz Sharif's vision emphasises promoting a liberalised and competitive import mechanism for vehicles in Pakistan.
Highlighting the shift towards sustainable transportation, he stated that Pakistan is moving away from petrol-based vehicles towards environmentally friendly alternatives. In line with the prime minister's directives, the government has introduced a comprehensive Electric Vehicle (NEV) Policy 2025-2030.
Under this policy, Pakistan aims to convert 2.2 million vehicles to electric by the year 2030. "The promotion of electric vehicles is crucial for reducing smog and improving public health," said Khan. "EVs are not only cost-effective but also beneficial for the environment and the people of Pakistan."
During the meeting, the Association assured the ministry that they will submit detailed proposals to support the policy process. The SAPM assured the delegation that the government will carefully review their suggestions and extend full cooperation.
Meanwhile, 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 and Importers Association (APCDIA) to strengthen collaboration between the private and government stakeholders.
The APCIA, while appreciating the government's plans to allow import of commercial vehicles via amendments to the Import Policy Order, were of the view that consultations with the association could lead to formulation of a well-rounded policy for import of commercial vehicles.
Afzal Khan assured the association that the Ministry of Commerce understands the importance of conducting stakeholder consultations and invited tangible proposals from the association for incorporation in the updated Import Policy Order, expected to be issued after September, 2025.
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