Islamabad: (RightNow). The final draft of the new Auto Policy 2026 to 2031 has been presented to the Prime Minister. It includes proposals for a phased reduction in import duty on hybrid and commercial vehicles.

According to the document, the policy aims to promote investment, production, and exports in the automotive sector. A phased reduction in duty on hybrid vehicles has been proposed.

The proposal suggests reducing duty on hybrid cars up to 850 cc from 50% to 30%. The same reduction is proposed for vehicles between 850 cc and 1500 cc.

For vehicles between 1501 cc and 1800 cc, the duty will be gradually reduced to 20%. A 20% reduction over five years is also proposed for vehicles above 1800 cc.

It is noteworthy that changes in the import duty and tax structure for vehicles were also made in the current fiscal year. The Finance Bill 2026-27 included a reduction in duty.