Pakistan increases import duties on tyres and motorcycle parts in 2026
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Pakistan Increases Import Duties on Tyres & Motorcycle Parts

The Economic Coordination Committee has approved higher customs duty on tyres and motorcycle parts in Pakistan. Additional customs duty on imported radial tyres and motorcycle parts goes from 4% to 11%, and on motorcycle parts imported by local manufacturers from 11% to 31%.

The ECC met on 8 October 2026 under Finance Minister Muhammad Aurangzeb, on a summary from the Revenue Division.

One thing first, because it changes what you should do about it: this has been approved, not notified. We checked, and the detail is in the next section.

It is also the second import-policy move in a fortnight, after the relaxation of rules on the import of used cars in Pakistan one channel loosened, another tightened.

Approved Is Not the Same as In Force


Additional customs duty rates do not live in an ECC decision. They live in an SRO in this case SRO 693(I)/2006, the standing notification that levies ACD on specified imports. The ECC approved an amendment to it. FBR then has to notify that amendment before any importer pays a different rate.

We looked at FBR's own list of active import SROs, which shows SRO 693(I)/2006 along with every amendment ever made to it. The most recent amendment listed is SRO 930(I)/2024, dated 30 June 2024. There is no October 2026 amendment on it.

So at the time of writing, the old rates are still what gets charged at the port. If you import, distribute or price these goods, that is the difference between repricing today and waiting. Check that FBR page yourself before you act it is the first place the change will show up, and it will be more current than any news article, including this one.

What Changed in the Customs Duty on Tyres and Motorcycle Parts in Pakistan?


What it applies to Old ACD New ACD
Import of radial tyres and motorcycle parts that are also manufactured locally 4% 11%
Motorcycle parts imported by local manufacturers 11% 31%

Approved by the ECC on 8 October 2026. Additional customs duty sits on top of ordinary customs duty, not instead of it.

Two things to be precise about, because both are easy to get wrong.

This is not a blanket increase on all imported tyres. Additional customs duty is a duty on imports, and the test here is whether the item is also made in Pakistan. An imported tyre with no local equivalent is not what this measure is aimed at. Specified categories, not everything on the shelf.

And ACD is not the whole duty. It is an additional layer charged on top of the normal customs duty on the same goods. A 4% to 11% change is a change to one component of the landed cost, not a jump from 4% total to 11% total.

The Two Measures Pull in Opposite Directions


Both changes are officially described as facilitating local manufacturers of radial tyres and motorcycle parts. Look at what each one actually does, though, and they are not the same kind of help.

The first measure protects. Raising ACD on imports that compete with locally made goods makes the imported version dearer and the local one relatively cheaper. That is standard protection, and it helps a local maker straightforwardly.

The second measure taxes. Raising ACD from 11% to 31% on motorcycle parts imported by local manufacturers hits the inputs those manufacturers buy. The logic is presumably to push them towards local sourcing — but until a local supplier exists for a given component, the only immediate effect is a higher input cost for a Pakistani factory. That is our reading of the two measures side by side, not a stated government position.

And the weight is on the input side. 7 percentage points on the first, 20 on the second — the increase on manufacturers' imported parts is almost three times the increase on finished-tyre imports.

One Number Worth Noticing

The two headline figures look unrelated. Run the ratios and they are almost identical: 4 to 11 is a 2.75× increase, and 11 to 31 is 2.82× just 2.5% apart.

In other words, the same proportional increase has been applied twice, to two very different starting points. That looks like a deliberate rule rather than two separately negotiated numbers, and it is the clearest hint in the decision about how the Revenue Division arrived at it.

Will Motorcycle or Tyre Prices Increase in Pakistan?


Nobody has announced a price increase, and we are not going to predict one with a number. Here is what can be said honestly.

On Rs 100 of assessed import value, ACD on an affected tyre goes from Rs 4 to Rs 11, and on an affected imported part from Rs 11 to Rs 31. Because sales tax and other levies are calculated on a duty-inclusive value, the final landed cost rises by more than the duty change alone. We are not putting a figure on that, because it depends on the item's full tax stack.

What happens after that is a commercial decision, not an arithmetic one. An importer may absorb part of it, a local alternative may undercut the imported item, or existing stock cleared at the old rate may hold prices for weeks. Duty changes do not transmit to retail one-for-one, and anyone telling you the exact rupee effect on a tyre today is guessing.

The practical advice: if you were going to buy an imported tyre or a specific imported part anyway, there is no reason to panic-buy but there is also no reason to assume today's price is permanent. And if you are weighing a local alternative, this is the moment that comparison gets more interesting. Wider changes to new rules for imported cars in Pakistan are moving in the same direction.

Local Manufacturing and Auto Parts Localisation


The official framing for the higher customs duty on tyres and motorcycle parts in Pakistan is domestic manufacturing: make the imported version more expensive, and local production becomes viable at scale.

It is worth seeing where this sits. Tariffs on finished vehicles are being reduced under the forthcoming auto policy, while duty on these specific imported components is going up. Those are not contradictory cheaper cars, dearer imported parts and more local content is a coherent position but it does mean the parts sector is being pushed and pulled at once. We set the tariff side out in Pakistan Auto Policy and car import duties.

The thing a duty increase cannot do by itself is create a supplier. If a component has no local manufacturer today, a 31% ACD does not produce one; it just raises the cost of the import until someone invests. Whether that investment follows is the open question, and it is the same question running through the Pakistan Auto Policy 2026-31 latest update, which is still unapproved.

What This Means If You Are Buying


For most drivers the honest answer is: watch, do not react. The change is approved but not yet notified, it covers specified categories rather than everything imported, and no seller has announced anything. If you are due new tyres, buy on the right size and speed rating for your car rather than on a duty headline the wrong tyre at a good price is still the wrong tyre. What is worth doing now is asking, when you buy any imported part, whether a locally made equivalent exists for your vehicle, because that is the question this policy is designed to make you ask. We track the rest of it in Asad Autos automotive news and updates.

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Frequently Asked Questions


What is the new customs duty on tyres in Pakistan?▾
The ECC has approved raising additional customs duty from 4% to 11% on imports of radial tyres and motorcycle parts that are also manufactured locally. It applies to specified categories, not to every imported tyre, and ACD is charged on top of ordinary customs duty rather than instead of it.
Is the new duty already in force?▾
Not as of publication. The ECC approved an amendment to SRO 693(I)/2006, and FBR must notify that amendment before the new rate is charged. FBR's active import SRO list still shows the most recent amendment to SRO 693(I)/2006 as SRO 930(I)/2024, dated 30 June 2024. Check that list for the current position.
What is the new import duty on motorcycle parts?▾
Additional customs duty on motorcycle parts imported by local manufacturers rises from 11% to 31% — an increase of 20 percentage points, nearly three times the 7-point rise applied to finished radial tyre imports.
What is additional customs duty (ACD)?▾
A duty charged on imports of specified goods in addition to the ordinary customs duty on the same item. It is levied through SRO 693(I)/2006 and its amendments, which is why a change to ACD means a change to that SRO. Being an import duty, it cannot be charged on goods made in Pakistan.
Does the new duty apply to all imported tyres?▾
No. The measure covers imports of radial tyres and motorcycle parts that are also manufactured locally. The local-substitute test is what brings an item into scope, so an imported tyre with no Pakistani equivalent is not the target of this change.
Will tyre or motorcycle prices increase because of this?▾
No price increase has been announced and we are not predicting a figure. On Rs 100 of assessed import value the ACD goes from Rs 4 to Rs 11, or Rs 11 to Rs 31, and because other levies are calculated on a duty-inclusive value the landed cost rises by more than that. Whether any of it reaches the shelf depends on commercial decisions, existing stock cleared at the old rate, and whether a local alternative undercuts the import.
How will the increase affect local manufacturers?▾
Both ways, which is the interesting part. The first measure shields them from imported competition. The second raises the duty on parts they themselves import, so until a local supplier exists for a given component their input costs go up. Both are described officially as facilitating local manufacturers; reading them side by side, they pull in opposite directions. That comparison is our analysis, not a government statement.
What did the ECC actually decide, and who proposed it?▾
The Economic Coordination Committee of the cabinet, chaired by Finance Minister Muhammad Aurangzeb, met on 8 October 2026 and approved the two ACD changes on a summary submitted by the Revenue Division, along with an amendment to SRO 693(I)/2006. The stated aim is promoting domestic manufacturing.
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