Breaking from recent trends, iSLAMABAD – The government has decided to impose Federal Excise Duty ( FED) on imported vehicles as part of the Budget 2026-27 proposals. During his budget speech, Finance Minister Muhammad Aurangzeb disclosed that SUVs with engine capacities ranging from 2,000cc to 3,000cc would also be subject to Federal Excise Duty. The news has sparked debate among key stakeholders.

Key Moments

To understand the full scope of this development, it is important to consider the broader context.

He further stated that the FED on vehicles with engine capacities exceeding 3,000cc is being increased.

The government has also proposed imposing Federal Excise Duty on electric vehicles priced above Rs20 million.

Player Performance

The implications of this development are already being assessed by those closest to the issue.

The finance minister confirmed that a new auto policy is currently under review by a committee constituted by Prime Minister Shehbaz Sharif.

Of particular significance is the fact that according to Aurangzeb, the existing incentives for electric motorcycles, rickshaws, and buses will remain in place.

Stats and Analysis

Beyond the immediate headlines, this development could reshape how the issue is handled.

He also proposed a one percent sales tax concession on imported electric trucks to encourage the adoption of clean transportation.

Notably, in addition, the finance minister announced that the Federal Excise Duty on overseas business-class air travel has been abolished.

Compounding the significance of these events, the post Pakistan proposes federal excise duty on imported vehicles in Budget 2026-27 appeared first on Daily Pakistan English News.

What's Next

This remains an active and fast-moving story. With significant stakes and wide-ranging implications, the next few days are expected to bring greater clarity on several outstanding questions.