In Pakistan, thousands are planning to shift to Hybrid cars and amended Finance Bill 2026 made their plan easier as Customs Duty on small hybrids has been slashed from 100% to 50%.
After revising the import duty structure for Internal Combustion Engine (ICE) vehicles, the government has also announced major changes for imported hybrid vehicles through the amended Finance Bill 2026. As smaller hybrids receive some relief, larger hybrid vehicles will be hit with significantly higher Federal Excise Duty (FED), potentially offsetting the benefit of lower import duties.
One of the biggest changes is the reduction in Customs Duty (CD) from 100% to 50% for all imported hybrid vehicles. The government has also reduced Additional Customs Duty (ACD) from 6% to 4%, while Regulatory Duty (RD) remains unchanged at 10%. These reductions are expected to lower one component of the import cost for hybrid vehicles.
While Customs Duty has been reduced, the government has increased the Federal Excise Duty (FED)/Special Excise Duty (SED) on higher-engine-capacity hybrid vehicles. This means buyers considering premium hybrid SUVs and luxury sedans could end up paying substantially more despite the lower Customs Duty.
| Category | Customs | Regulatory | Additional Customs | FED/SED |
|---|---|---|---|---|
| Hybrid 1801cc–2500cc | 100% | 10% | 6% | 30% |
| Hybrid 2501cc–2999cc | 100% | 10% | 6% | 30% |
| Hybrid 3000cc and above | 100% | 10% | 6% | 40% |
New Duty Structure
| Category | Customs | Regulatory Duty | Additional Customs | FED/SED |
|---|---|---|---|---|
| Hybrid 1801cc–2000cc | 50% | 10% | 4% | 30% |
| Hybrid 2001cc–3000cc | 50% | 10% | 4% | 116% |
| Hybrid 3000cc and above | 50% | 10% | 4% | 132% |
This category benefits the most from the changes. Customs Duty has been cut in half, Additional Customs Duty has been reduced, and FED remains unchanged at 30%. These vehicles could become relatively more affordable compared to the previous tax regime.
If you’re planning to import a hybrid between 2001cc and 3000cc, Customs Duty has been reduced to 50%, the FED has surged from 30% to 116%. This sharp increase is likely to outweigh much of the Customs Duty relief, making these vehicles significantly more expensive.
For hybrids above 3000cc, Customs Duty has been halved, FED has jumped from 40% to 132%, dramatically increasing the tax burden on high-end imports. The amended Finance Bill 2026 offers meaningful Customs Duty relief on imported hybrid vehicles, but the overall impact depends on the vehicle’s engine size.
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