ISLAMABAD (Kashmir English): The federal government has opened commercial import of old vehicles in compliance with a major condition set by the International Monetary Fund (IMF) ahead of the arrival of the mission.
The global lending agency had set a deadline of September 30 for the removal of all restrictions in this sector.
According to the officials, initially, the import of five-year-old vehicles will be permitted until June 30, 2026.
Importers will be charged a 40 percent additional tax compared to new vehicles, alongside customs duty, additional customs duty, and regulatory duty.
After July 1, 2026, the age limit for imported vehicles will be abolished altogether.
The duty on old vehicles will then also be gradually reduced by 10 percent each year until FY 2029-30.
Vehicle import policy amendments
The announcement comes through an amendment to the Import Policy Order 2022, which previously allowed only limited categories of old vehicles such as bulletproof cars, armored vans, ambulances, firefighting trucks, and security vehicles.
Now, under the revised policy, commercial import of older vehicles has been allowed, but subject to environmental and safety standards.
