ISLAMABAD: The government has brought down the Regulatory Duty (RD) on commercial import of used vehicles from 40 percent to 30 percent from fiscal year 2026-27 in line with the envisaged targets under the National Tariff Policy (NTP).
The government has envisaged five-year plan for NTP from 2025 to 2030 under which the weighted average tariff on the auto sector will be brought down from over 10.7 percent to below 6 percent by 2030. In the second year of implementation of NTP, the Federal Board of Revenue (FBR) issued Statutory Regulatory Order (SRO) to bring down the rate of RD to 30 percent. When the NTP was envisaged, the RD rate was hovering at 50 percent, and the government slashed it down to 40 percent in the last budget for 2025-26, and now a further 10 percent reduction in the RD was implemented for the fiscal year 2026-27.
