86% import duty announced for 2000cc to 3000cc vehicles effective July 1

The Finance Bill 2026–27 has proposed new tax and duty rates for imported vehicles, particularly targeting higher-engine-capacity cars.

Under the proposed measures, imported vehicles with engine capacities ranging from 2000cc to 3000cc will be subject to an 86% duty from July 1, while vehicles exceeding 3000cc will attract a 92% duty.

At the same time, the government plans to reduce duties on smaller-engine vehicles. The duty on 1800cc cars is proposed to decrease from 156% to 74%, vehicles above 1500cc from 91% to 57%, 1000cc–1500cc cars from 76% to 52%, and vehicles up to 850cc from 66% to 42%.

The bill also introduces a revised duty structure for electric vehicles. EVs valued up to $75,000 will face a 30% duty, whereas those priced above $110,000 will be charged 40%.

In addition, new fixed and adjusted token tax rates based on engine size and vehicle model year are expected to take effect from July 1.