Luxury SUV Prices Fall Sharply After Pakistan’s 2025 Budget

Following the implementation of the Finance Act 2025 and accompanying new SROs (Statutory Regulatory Orders), Pakistan’s federal government has reduced import duties on luxury vehicles.

The adjustments encompass cuts in Customs Duty (CD), Regulatory Duty (RD), and Additional Customs Duty (ACD), with the ACD lowered from 7% to 6%. This reduction has directly decreased the overall cost of importing high-end SUVs.

Price Drops in Top Imported SUV Models

The duty reductions have translated into significant price declines across several popular luxury SUVs. Key models experiencing marked decreases include:

Toyota Prado LC150

• 2020 models: Price fell by Rs. 2.4 to 2.6 million
• 2021 models: Price fell by Rs. 2.9 to 3 million

Lexus LX570

• 2020 models: Price dropped by Rs. 6.5 to 6.7 million
• 2021 models: Price dropped by Rs. 7.5 to 7.8 million

Toyota Land Cruiser LC200 (URJ 202 Series)

• ZX (2020): Rs. 4.1 to 4.2 million reduction
• ZX (2021): Rs. 4.7 to 4.8 million reduction
• AX (2020): Rs. 3 to 3.2 million reduction
• AX (2021): Rs. 3.5 to 3.7 million reduction

Toyota Land Cruiser LC300 (AX & ZX Models)

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

Market Impact and Expectations

The government’s fiscal measures are anticipated to stimulate demand among affluent buyers and car importers. The reduction in duties not only makes luxury SUVs more accessible but also encourages formal imports, helping to reduce reliance on informal channels and discouraging exploitation of amnesty schemes.

These price adjustments reflect the government’s strategy to balance tax revenue with market growth, while supporting the automotive import sector amid evolving economic conditions.