Islamabad: The Economic Coordination Committee of the Cabinet has allowed commercial import of used vehicles. The ECC, which met in Islamabad on Wednesday with Finance Minister Muhammad Aurangzeb, decided to amend relevant provisions of the Import Policy Order, 2022 to allow the commercial import of used vehicles.

According to Radio Pakistan, initially, only vehicles not older than five years will be permitted until 30th June next year, after which the vehicle age limit shall stand removed. The ECC further directed that such commercial importation would remain subject to strict compliance with prescribed environmental and safety standards.

The Committee also approved the imposition of 40 percent Regulatory Duty, in addition to the existing customs duties, on the commercial import of used vehicles (less than five years old). This enhanced duty will remain applicable until 30th June next year. Thereafter, the duty shall be reduced gradually by 10 percentage points per year, reaching zero by 2029-30, in line with the recommendations of the Tariff Policy Board.

The ECC also approved a grant of 800 million rupees for the Pakistan Virtual Asset Regulatory Authority.