Pakistan, June 12 -- The government has announced a new Federal Excise Duty on imported vehicles as part of the budget for FY27-2026. The decision was revealed by Finance Minister Muhammad Aurangzeb during his budget speech in the National Assembly. The move targets higher-end imported vehicles, including luxury SUVs and electric cars. It is aimed at restructuring the auto taxation framework.

According to the finance minister, Federal Excise Duty will be applied on SUVs ranging from 2,000cc to 3,000cc. He added that duties on vehicles above 3,000cc will also be increased. Moreover, electric vehicles priced above Rs20 million will also come under the new tax regime. Therefore, luxury imports are expected to face higher costs.

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