What Changed in the Budget?
The following key revisions were made in the Finance Act 2025:
- Customs Duty (CD): Reduced on several categories of imported vehicles
- Regulatory Duty (RD): Cut drastically for cars above 1,800cc
- Additional Customs Duty (ACD): Brought down from 7% to 6%
- Import Age Limit: Relaxed for certain vehicle types, allowing the import of slightly older models
These adjustments aim to encourage legal imports, control inflation in the automobile market, and support consumers looking for better value.
How Much Did Prices Drop?
A noticeable price dip is seen across high-end SUVs and imported luxury models. Here are some examples of the new pricing landscape:
| Vehicle Model | Model Year | Approx. Price Drop (PKR) |
|---|---|---|
| Toyota Prado LC150 | 2020 | ₨2.4 – 2.6 million |
| 2021 | ₨2.9 – 3.0 million | |
| Lexus LX570 | 2020 | ₨6.5 – 6.7 million |
| 2021 | ₨7.5 – 7.8 million | |
| Land Cruiser LC200 ZX | 2020 | ₨4.1 – 4.2 million |
| 2021 | ₨4.7 – 4.8 million | |
| Land Cruiser LC300 AX | 2021 | ₨3.7 – 3.8 million |
| 2022 | ₨4.5 – 4.6 million | |
| 2023 | ₨5.4 – 5.5 million | |
| Land Cruiser LC300 ZX | 2021 | ₨4.9 – 5.0 million |
| 2022 | ₨6.0 – 6.1 million | |
| 2023 | ₨7.0 – 7.1 million | |
| 2024 | ₨7.6 – 8.0 million |
Impact on the Auto Market
For Buyers
This is excellent news for those looking to upgrade to luxury models. The revised duties can now save buyers anywhere from 2 to 8 million rupees depending on the vehicle.
For Importers
Vehicle importers are now in a better position to expand their offerings legally, with more room for competitive pricing.
For Local Market
The local automotive industry may face pressure to adjust pricing and improve feature offerings as competition with imports intensifies.
Why Did the Government Do This?
The aim is to:
- Make imported vehicles more accessible
- Promote formal imports and reduce reliance on the grey market
- Bring Pakistan’s auto tariffs in line with international standards
- Strengthen consumer buying power amid inflation
What to Watch Next
- Will car dealerships actually pass on the price cuts to consumers?
- How will local manufacturers respond to the increased affordability of imported vehicles?
- Will currency fluctuations affect the sustainability of these lower prices?
Conclusion
The post-budget reforms of 2025–26 are a game-changer for Pakistan’s auto market—especially for luxury SUV lovers. With duty cuts making high-end imports significantly more affordable, this is a golden opportunity for buyers who’ve been waiting for the right time.