ISLAMABAD: Government has lowered the maximum regulatory duty applicable on imports from 50 percent to 20 percent with effect from July 1, 2026. Notification supersedes SRO 1152(I)/2025 and represents second consecutive year of lowering tariffs under National Tariff Policy 2025-30.
Automobile imports absorb the deepest cut. The 50 percent RD slab that once applied to SUVs, 4x4s, and other large-engine vehicles under PCT 8703 no longer exists at that level. Excluding autos, the steepest previous RD sat at 48 percent on fruit and nut juices that’s dropping too, Pakistan import duty cut and Additional Customs Duty across a wide swath of products.
Pakistan Tariff Cuts
Auto assemblers face a mixed picture. Pakistan import duty cut on CKD kits, auto parts, and CBU vehicles falls from a 50-100 percent range down to 30-50 percent. That sounds like a win for the industry, except local assemblers operating under SRO 656’s concessionary regime already pay a preferential rate capped at 30 percent meaning the general tariff cut barely moves the needle for them while making commercial vehicle imports cheaper for everyone else. Commercial imports of vehicles under PCT 8702, 8703, and 8704 specifically see RD drop from 40 percent to 30 percent, with regulatory duties set to disappear entirely by 2030 under the NTP’s phase-out schedule.
This directly affects tyre makers. Research and development of imported car, bus and truck tyres declines by 4 percentage points to 16%, bringing down the cost difference between locally made and imported tyres and reducing the profit margin for local tyre makers. Import of OEM tyres is still protected by SRO 656.
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Auto Import Duty Pakistan
Steel producers get a more favorable outcome. Long steel manufacturers Mughal Steel, Amreli Steels, and Agha Steel see RD cuts on certain categories. Flat steel players fare even better: International Steels and Aisha Steel benefit from a 1 percent RD cut on cold-rolled coil, plus a full reduction to zero on hot-rolled coil, their key raw material. Net effect for flat steel manufacturers works out to roughly 1.5 percent positive impact.
Chemical makers see targeted relief too. Soda ash duty drops 1 percentage point, directly benefiting Lucky Core Industries, while hydrogen peroxide and polyester duties also come down.
Smaller categories tell their own story. The government cut the regulatory duty on razor imports by four percentage points to 16 percent, increasing competitive pressure on local manufacturer Treet Corporation. Round cans up to 300ml see RD fall to 4 percent from 5 percent, opening the door to more import competition for Pakistan’s beverage-can sector. The government cut Customs Duty on unmanufactured tobacco imports by five percentage points, benefiting companies that rely on imported tobacco as a raw material.
Regulatory Duty Pakistan
One piece remains missing from the picture: the revised Auto Policy, which is expected to introduce a new incentive structure for the sector, hasn’t been notified yet. Until that lands, assemblers are working with half the puzzle lower general tariffs on one side, unclear sector-specific incentives on the other, and a 2030 deadline for regulatory duties to vanish completely already ticking in the background.
