Customs duty on excavators, loaders, cranes and dumpers in Pakistan

Customs duty on machinery used in construction is 0% for excavators, loaders, bulldozers, graders, road rollers and mobile cranes in Pakistan’s 2026-27 tariff. Off-highway dumpers and crane lorries pay 30%, plus 4% additional customs duty. On every machine you also pay 18% sales tax, a 3% value addition tax if you import to resell, and advance income tax. The rates are the same for new and used machines.

What is the customs duty on construction machinery by PCT code?

These are the 2026-27 rates, in force from 1 July 2026. Customs duty (CD) comes from FBR’s tariff. Additional customs duty (ACD) comes from S.R.O. 1063(I)/2026 and regulatory duty (RD) from S.R.O. 1064(I)/2026.

The 0% ACD on most lines is because S.R.O. 1063(I)/2026 charges ACD mainly on goods in the 20% and higher CD slabs, plus a list of named codes; none of the 0% to 15% machines here is on that list. S.R.O. 1064(I)/2026 lists no code from headings 84.26, 84.27, 84.29, 87.04 or 87.05, so there is no regulatory duty on them.

Is customs duty different for used machinery?

No. The tariff has one rate per PCT code, for new and used goods alike. What changes for used machines is whether you may import them at all, which the Import Policy Order decides. We read the current text in a consolidated copy (Version-20) on customspk.com, a private site, because the Ministry of Commerce site blocked us. The age limits below match the original 2022 gazette:

• used excavators, loaders and other plant: up to 10 years old, imported by construction companies registered with the Pakistan Engineering Council (PEC), mining and oil and gas companies, or commercial importers acting for them
• used dumpers, crane lorries and transit mixers: up to 5 years old and Euro-II compliant

Our guide to importing construction machinery from Japan covers these conditions and the steps.

The 30% regulatory duty on commercial imports of used vehicles under S.R.O. 1065(I)/2026 applies to vehicles imported under clause (xvi) of Appendix-C. Off-highway dumpers are allowed under a different clause, (i), so on our reading that 30% doesn’t apply to them.

What other taxes are paid at import?

• Sales tax: 18% of the customs value plus customs duties (Sales Tax Act, section 3(1)(b)). We found no general sales tax exemption for construction machinery. The exemptions we saw are tied to named projects, such as the Sukkur-Multan motorway.
• Value addition tax: 3% at import (Twelfth Schedule), unless an exclusion applies. Exclusions include manufacturers importing inputs for their own use and registered service providers importing goods for their own business. We couldn’t confirm whether a construction company importing a machine for its own use qualifies; that depends on its registration.
• Advance income tax under section 148, as of the rate card updated to 30 June 2026:

If you’re registered for sales tax, the sales tax and the 3% paid at import count as input tax against what you charge when you sell. See filer vs non-filer for why the non-filer rate is double.

How much tax on Rs 1 crore of machinery?

These examples apply the 2026-27 rates to a customs value of Rs 1 crore, for a commercial importer on the Active Taxpayers List. They are arithmetic on the published rates, not a quote for any machine.

Are there concessions for construction companies?

Yes, for the vehicle-type machines. Under Part-I, serial 27 of the Fifth Schedule to the Customs Act (updated 30 June 2026), construction companies registered with SECP and the PEC pay 10% customs duty, instead of 30%, on:

• off-highway dumpers (8704.1090)
• crane lorries (8705.1000)
• transit mixers (8705.4000)
• concrete placing trucks, super swinger truck conveyors and mobile canal lining equipment (8705.9000)

The concession only covers goods not listed as made in Pakistan in FBR’s Customs General Order, or as certified by the Engineering Development Board. Imports under the Fifth Schedule also pay no ACD (S.R.O. 1063(I)/2026). The Fifth Schedule has further 0% entries for machinery imported for some project types, such as mineral exploration, each with its own conditions.

Temporary import is another route. Construction companies can bring in machinery against an indemnity bond or bank guarantee and re-export it after the project. They can keep it later if FBR allows, after paying all duties and taxes.

Is custom duty on machinery imported from China different?

For excavators, loaders, bulldozers and most cranes, no: their customs duty is 0% whatever the country of origin. We haven’t checked whether the China-Pakistan Free Trade Agreement gives a lower rate on dumpers and crane lorries, so ask your clearing agent before you rely on 30%. Sales tax and income tax don’t change with origin.

More guides: Import & Export · Importing machinery from Japan · Buying used construction machinery · Customs duty calculator · Car import rules · Import and export licence