In a significant development after the enactment of Pakistan’s Finance Act 2025, the government has decreased import duties on vehicles, resulting in sharp decline in prices of high-end imported SUVs. These changes, enforced through updated Statutory Regulatory Orders (SROs), include reductions in Customs Duty (CD), Regulatory Duty (RD), and Additional Customs Duty (ACD), having the ACD rates particularly reduced from 7% to 6%.

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As a result, retail prices for luxury SUVs such as the Toyota Land Cruiser LC300, LC200, Prado LC150, and Lexus models LX570 and LX600 have dropped up to Rs8 million. This fiscal adjustment has made premium vehicles more accessible to affluent buyers and importers, marking a notable shift in the luxury vehicle market. Dealerships and consumers alike are expected to benefit from these savings, which reflect the real-world impact of the government s revised tax policy.

The policy move is also anticipated to improve transparency in the automobile import sector, discourage misuse of past amnesty schemes, and encourage legitimate, documented imports. With lower financial barriers, the luxury SUV market in Pakistan may experience renewed activity and investor interest in the months ahead.