Thursday, July 3, 2025

Massive Tax Cuts on Cars, SIM Cards Announced from July 2025, Here’re Details

The Government of Pakistan has announced major tax cuts on over 40 imported items, including vehicles, SIM cards, and essential food products, effective from July 1, 2025.

According to the official notification, the regulatory duty on mobile phone SIM cards has been reduced from 15% to 12%, offering slight relief to consumers. One of the biggest changes is in the auto sector—used and new cars, including minivans, will now be taxed at 10%, a one-third reduction from previous rates. Imported SUVs will see the most significant drop, with regulatory duty reduced by 44%, bringing it down to 50%.

In the food sector, duties on frozen fish have been halved to 17.5%. Chicken and fish imports now carry a 5% duty, while bird eggs will be taxed at 10%, reduced from 15%. Cheese and yogurt duties have been brought down to 50%, offering relief to dairy product consumers.

For pet owners, the duty on dog and cat food has been reduced to 40%, a 5% decrease. The government has also cut duties on several fruits and nuts—up to 16% on dates, coconuts, cashews, and Brazilian nuts, and up to 20% on figs, mangoes, guavas, papayas, avocados, and pineapples. Apple duties were brought down from 45% to 36%.

Tobacco products and instant coffee also saw 5% to 40% reductions in duty.

The tax relief package aims to ease inflationary pressure and make imported products more affordable. These revised rates are now officially in effect across Pakistan.

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