Imported Cars about to get expensive in Pakistan after FBR ends Trust Price system

2026-01-26 - 17:09

KARACHI – Bad news for anyone dreaming of importing a car or buying imported vehicles in Pakistan. For years, buyers could get a relative bargain by using Asian Trust Price (ATP) system or local agent certificates to lower customs duties but that is now over. Federal Board of Revenue (FBR) rolled out new rules under CGO No. 02 of 2026, and imported car prices are about to climb sharply. With local agent loopholes gone and valuations now pegged strictly to the global Manufacturer’s Suggested Retail Price (MSRP), what once felt like a smart workaround is now a thing of the past, leaving buyers facing significantly higher taxes and costs. The top tax authority completely overhauled valuation process for imported vehicles, sending shockwaves through the auto industry. According to Customs General Order (CGO) No. 02 of 2026, issued on January 26, 2026, the government has imposed much stricter rules for determining the taxable value of cars, effectively closing long-standing loopholes. If we look at before, importers leaned on Asian Trust Price (ATP) system and certificates from local authorized agents to declare lower car values, drastically reducing customs duties. Under latest tweaks, all references to “or their authorized local agents” have been removed from the valuation rules in CGO No. 14 of 2005. Customs officials will now rely exclusively on the Manufacturer’s Suggested Retail Price (MSRP), the global sticker price of vehicles, to determine customs duties. This replaces the previous method of using agent-provided valuations, which were often significantly lower. The shift to MSRP means buyers can no longer exploit “agent loophole” for cheaper import costs. Since MSRP is almost always higher than ATP-based or agent-assisted values, customs duties and taxes on imported cars are expected to skyrocket. The shift to valuing imported cars strictly based on Manufacturer’s Suggested Retail Price (MSRP) will reshape Pakistan’s vehicle market. This may also slow down imports as occasional buyers and smaller dealers find costs harder to manage, potentially pushing demand toward locally assembled or used vehicles. As it increases transparency and standardizes valuations, it removes flexibility that importers previously relied on to legally cut costs. BYD Atto 2 and Sealion 7 hit Pakistan’s auto market; Check Price, EV Specs!