Massive Drop in Luxury Imported Car Prices After Budget 2025

In a significant move after the announcement of Budget 2025, the federal government of Pakistan has greatly lowered the customs duties on imported high-end luxury cars. This move aims to revitalize the country’s auto market and bring greater transparency to the economy.

Under the newly implemented Finance Act 2025, the government has slashed several types of import duties, including Customs Duty (CD), Regulatory Duty (RD), and Additional Customs Duty (ACD) on high-end vehicles. Notably, the ACD has been reduced from 7% to 6%, effectively lowering the overall cost of importing luxury SUVs into Pakistan.

These changes are backed by the issuance of new Statutory Regulatory Orders (SROs), which provide legal and procedural support to the duty reductions.

The policy shift has already started showing visible effects in the automobile market. Prices of top-tier imported SUVs, especially premium models such as the Toyota Land Cruiser, Toyota Prado, and Lexus LX series, have dropped by millions of rupees.

Here’s a breakdown of the price reductions by model and year:

Toyota Prado LC150

• 2020 model: Price reduced by Rs. 2.4 to 2.6 million
• 2021 model: Price reduced by Rs. 2.9 to 3 million

Lexus LX570

• 2020 model: Price reduced by Rs. 6.5 to 6.7 million
• 2021 model: Price reduced by Rs. 7.5 to 7.8 million

Toyota Land Cruiser LC200 (URJ 202 Series)

• URJ 202-ZX (2020): Decrease of Rs. 4.1 to 4.2 million
• URJ 202-ZX (2021): Decrease of Rs. 4.7 to 4.8 million
• URJ 202-AX (2020): Decrease of Rs. 3 to 3.2 million
• URJ 202-AX (2021): Decrease of Rs. 3.5 to 3.7 million

Toyota Land Cruiser LC300 – AX & ZX Models

• AX (2021): Price cut by Rs. 3.7 to 3.8 million
• AX (2022): Price cut by Rs. 4.5 to 4.6 million
• AX (2023): Price cut by Rs. 5.4 to 5.5 million
• ZX (2021): Price cut by Rs. 4.9 to 5 million
• ZX (2022): Price cut by Rs. 6 to 6.1 million
• ZX (2023): Price cut by Rs. 7 to 7.1 million
• ZX (2024): Price cut by Rs. 7.6 to 8 million

Purpose Behind the Policy Shift

According to government officials, these measures are part of a broader strategy to:

• Support consumers by reducing the financial burden on imported vehicle buyers.
• Promote legal imports and discourage illegal or undocumented practices.
• Stimulate the automobile industry by encouraging competition and variety.
• Improve transparency in the automotive and import sectors.

The federal authorities believe this policy will inject fresh momentum into the auto sector while also offering relief to those seeking high-quality international vehicles at reduced prices.

The reduction in duties on imported luxury SUVs has not only led to a sharp decline in vehicle prices but also signaled a positive change in Pakistan’s trade and economic environment. Consumers, dealers, and auto enthusiasts are hopeful that this move will bring long-term benefits, increased availability of luxury vehicles, and more competitive pricing in the market.