This evening, the federal budget is expected to bring good news for car buyers, as older cars may become more affordable. The government is considering measures to make vehicle imports more accessible to the public in the upcoming fiscal year, including significant reductions in taxes on 5-year-old cars.
Sources indicate that the government is seriously exploring the relaxation of customs and regulatory duties under the National Tariff Policy. Proposals regarding tax cuts on the import of used cars have also been submitted to the International Monetary Fund (IMF).
Budget 2025: New Industrial Development Projects to Receive Funding
Under the proposed plan, not only will the import of 5-year-old cars be permitted, but the additional customs duties currently imposed on them are also intended to be phased out gradually. Furthermore, a step-by-step reduction in regulatory duties has been recommended to bring the prices of imported cars within the reach of ordinary consumers.
Additionally, reforms are being considered in the fifth schedule of the Customs Act, which would include recommendations to exclude new regulatory duties on the auto sector and eliminate existing non-tariff barriers. The government’s strategic goal is to reduce the average import tariff on the auto industry to below 6% by 2030.
It is noteworthy that today, the federal budget for the fiscal year 2025-26, with an estimated volume of approximately 18 trillion rupees, is being presented in the National Assembly. The budget includes over 2 trillion rupees in new tax measures aimed at stimulating economic activity.
