Pakistan Slashes Import Duties on Luxury Goods

ISLAMABAD: The Pakistan government has officially reduced import duties on a wide range of luxury goods with the start of the new financial year, ARY News reported on Thursday.

According to a government notification, notable duty reductions apply to luxury vehicles, branded accessories, perfumes, and premium bathroom fittings. The import duty on new sports cars and branded jeeps has dropped from 15% to 10%, while the duty on luxury sports jeeps has been halved from 90% to 50%. Additionally, imported yachts, cruises, and boats will now face only a 5% duty.

Duties on branded sunglasses and watches have been reduced from 30% to 24%, while perfumes and cosmetics will now be taxed at 40% instead of 50%. In home fittings, the duty on wash basins and tanks has been cut from 30% to 24%, bathtubs from 20% to 16%, and ceramic sinks from 40% to 32%.

Other luxury goods, such as artificial jewellery, will now be taxed at 36%, down from 40%, while tablecloths and netwear will face a 24% duty, reduced from 30%.

Separately, Finance Minister Muhammad Aurangzeb announced in a Senate Finance Committee meeting that commercial imports of vehicles up to five years old will be allowed from September 2025, subject to a 40% duty.