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RD Removed On Used Cars Upto 1800cc – Will Prices Come Down?

On March 31, 2023, Regulatory Duty (RD) was reversed or totally removed from used cars up to 1800cc, taking it back to 0%. In August 2022, the government imposed 100% RD on used cars up to 1800cc under SRO1571(I)/2022. Initially, the SRO was imposed till February 2022, but the government then extended it till March 31. 

The removal of the RD caused quite a confusion in the market, and to remove that confusion, we wrote a detailed blog, which you can read here. This blog revealed that the RD on cars above 1800cc had not dropped down to 0% because it was 70% before August 2022 and it went back to that, meaning there is not going to be much difference in the prices. However, people are more curious about cars up to 1800cc because these are more famous among the masses and bought for daily use. These cars include Toyota Aqua, Passo, Honda Vezel, Insight, Fit, and a number of other 660cc Japanese cars. And the question is, will their price decrease significantly as RD is reversed completely? 

Will Prices Come Down? 

 We asked the market analysts to understand the situation of used cars up to 1800cc market. We came to know that there are high chances RD removal may make little difference because, between August 2022 and March 2023, the General Sales Tax (GST) was increased from 18% to 25%, while the dollar rate jumped from Rs. 214.65/USD on August 22, 2022, to Rs. 283/USD on March 31, 2023. It means the USD increased by Rs. 68 in seven months, a 30% jump against the PKR. 

The experts specifically mentioned that due to 100% RD, almost no one imported or cleared their cars from the port because it was just unfeasible. “This means there were almost no used cars on roads during that time period,” they said. Hence, there would be little difference in current prices and rates before August 22, 2022.


The prices of used cars up to 1800cc will come down, but the impact of RD removal would not be much because of the new GST and depreciation of PKR against the USD. Until the unstable economic conditions in Pakistan, the situation will remain uncertain and unstable for both sellers and buyers. 

 What is your take on this situation? Please share your thoughts in the comments section. 

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