The government will allow commercial imports of used cars up to five years old starting September 1, 2025. These vehicles will face an additional 40% import tariff.
This additional duty will decrease by 10 percentage points each year and will be fully removed within four years. After that, only standard import taxes will apply. The decision is part of the broader National Tariff Policy 2025–30, which aims to reduce and simplify the overall duty structure over the next five years.
Used vehicles brought under the personal baggage, transfer of residence, or gift schemes will not be subject to the new 40% tariff. However, the sender must have stayed abroad for at least 700 days for the exemption to apply.
The government hopes that the change will increase the supply of used vehicles in the market. Local car companies have been vocal, though, indicating that this could impact the local auto industry. The new policy would also permit the import of used cars that are not older than seven years until 2026 27. Regulations on safety and environment standards will be included in order to manage risks.
The Ministry of Commerce and the Senate’s Standing Committee on Finance are working to finalize the regulatory framework for implementation before the new policy begins.
For now, prices in the market are expected to remain high due to the immediate 40% tariff and existing duties on vehicles.
