Pakistan revises tyre customs values and eyes 18% sales tax on all vehicles

Pakistan's Federal Board of Revenue issued Valuation Ruling No. 2086/2026, updating customs values for more than 110 categories of imported passenger‑car tyres and tubes. The new valuations differentiate by country of origin, assigning higher values to Japanese tyres and lower ones to Chinese imports, and are intended to reflect international market trends. The revision is expected to affect import duties, retail prices and overall market dynamics in the country's tyre industry.

Separately, the government is considering an 18% sales tax on every vehicle category, including electric, hybrid and conventional cars. Industry analysts project price increases of about 17% for electric models and roughly 10% for hybrids, which could curb demand in a price‑sensitive market. The proposed tax aims to raise revenue but may slow sales growth and impede the shift toward cleaner transportation technologies.