Introduction
Car import taxes range from about 4% of CIF value in Georgia and 5% in Kuwait and Qatar to roughly 300% in Sri Lanka and Barbados. Bangladesh charges over 1,000% on cars above 4,000 cc. The same 2.0-litre petrol car can cost about 10% extra in Dubai and about 138% extra in India.
For buyers, exporters and dealers moving vehicles across borders, that spread is the single most important factor in whether an import makes financial sense. This guide sets out the customs duty, VAT/GST, excise and registration taxes, age limits and steering rules for more than 80 countries, region by region.
Every figure for an IPAS destination comes from the customs reference IPAS maintains for that country. Each reference is built from the national tariff schedule, finance acts and gazette notices, and re-checked every month. Each figure was recalculated in October 2026. Where a country has its own IPAS import guide, the country name links to it.
For an exact, vehicle-specific figure, including HS code classification and any trade-agreement saving, use CarImport.AI.
Methodology
The reference car. Every headline figure is for the same vehicle, so the countries can be compared directly:
- A new petrol passenger car (HS 8703), 1,800–2,000 cc, around 160 g/km CO2
- CIF value USD 30,000 (vehicle price + insurance + freight to the destination port)
- Shipped from a non-preferential (MFN) origin, meaning no free trade agreement saving is assumed
What "Total Tax Burden" includes. Every tax charged to bring the car in and put it on the road for the first time, as a percentage of CIF. That covers customs duty, excise or purchase tax, VAT/GST, levies and fees. It also covers one-off registration taxes where they are the main cost of importing (Hong Kong's First Registration Tax, Singapore's ARF, the Dutch BPM). Where a registration tax depends on the exact car or region, the cell says "+" and names it. Annual road taxes are not included.
Where ranges appear. Many countries tax by engine size, CO2, value or age. A range shows how the burden moves across typical passenger cars, from about 1.0 litre to 3.0 litres and above. The headline reference figure sits inside it.
Important caveats:
- Electric vehicles, hybrids, pickups and used cars are often taxed very differently. See the EV and age sections below, and the individual country guides
- Trade agreements can remove the customs duty, but never the VAT or internal taxes (see the FTA section)
- Fixed-amount taxes (per cc, per g/km, flat levies) were converted at October 2026 exchange rates, so the percentage moves with the currency
- Rates change: several countries have reviews or expiries due in late 2026, noted below. Confirm with CarImport.AI before you commit
Comparison Table: Vehicle Import Taxes by Country
Africa
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| Kenya | 35% (FY 2026/27; CET 25% stayed) | 16% | Excise 20/25/35% by engine, IDF 2.5%, railway levy 2% | 92-116% of CIF | Under 8 years | RHD only |
| Nigeria | 20% + 10% import levy | 7.5% | 7% surcharge, CISS 1%, ETLS 0.5%, Green Tax 2-4% from 2,000 cc | 50-55% of CIF | 9 years (12 in some sources) | LHD; RHD restricted |
| Ghana | 20% | 15% + NHIL 2.5% + GETFund 2.5% | ECOWAS 0.5%, AU 0.2%, EXIM 1%, network fee 1% | ~47% of CIF | 10 years (overage penalty beyond) | LHD; RHD restricted |
| South Africa | 25% (18% EU/UK) | 15% | Ad valorem excise up to 30%, CO2 levy | 66-95% of CIF | Used imports banned (ITAC permit only) | RHD only |
| Tanzania | 25% | 18% | Excise 0/5/10% by engine, railway levy 1.5% | 49-64% of CIF | No ban; extra excise from 8 years | RHD only |
| Uganda | 25% | 18% | Infrastructure levy 1.5%, 6% withholding (creditable), environmental levy from 5 years | ~55% of CIF | 15 years (13 under FY 2026/27 measures) | RHD |
| Namibia | 25% (SACU) | 15% | Ad valorem excise up to 30% | 64-94% of CIF | Used imports need a permit | RHD only |
| Botswana | 25% (SACU) | 14% | Ad valorem excise up to 30% | 58-90% of CIF | None | RHD only (for registration) |
| Zambia† | 25% + excise | 16% | Carbon tax, excise by engine/age | 50-80% of CIF | No ban (penalties >5yr) | RHD |
| Zimbabwe | 40% (25% on some small engines) | 15% | 25% surtax on cars over 5 years | 44-61% of CIF | No ban (surtax over 5 years) | RHD only |
| Cameroon | 30% (CEMAC) | 19.25% | Excise 12.5% over 2,500 cc, ~3% community and IT levies | 59-79% of CIF | None (excise rises with age) | LHD; RHD restricted |
| Senegal | 20% | 18% | Community and shipper levies ~2.9% | ~45% of CIF | 8 years (used cars) | LHD; RHD restricted |
| Côte d'Ivoire | 20% | 18% | Statistical 1%, ECOWAS 0.5%, UEMOA 0.8%, AU 0.2% | ~45% of CIF | 5 years (cars), 7 (pickups) | LHD; RHD banned |
| DR Congo | 20% | 16% | Excise 5%, OCC 2%, admin fee 1%, FERI 0.59% | ~50% of CIF | No national limit | LHD; RHD restricted |
| Mauritius | 0% | 15% | Excise 45-100% by engine | 67-130% of CIF | ~3 years (used cars) | RHD; LHD needs permit |
| Seychelles | 0% | 15% | Excise 50-100% by engine, flat environmental levy | 100-148% of CIF | No set limit; import approval needed | RHD; LHD needs approval |
Middle East (GCC + Region)
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| UAE (Dubai) | 5% | 5% VAT | None (no excise, luxury or CO2 tax) | 10.25% of CIF | 10 years (from manufacture) | LHD only (RHD for free-zone re-export only) |
| Saudi Arabia | 5% | 15% VAT | None on SASO-compliant cars | 20.75% of CIF | 5 years | LHD only |
| Oman | 5% | 5% VAT | None (EV zero-tax incentive ended 30 June 2026) | 10.25% of CIF | Under 7 years | LHD only |
| Qatar | 5% | None yet (VAT under review) | None | 5% of CIF | 5 years | LHD only |
| Bahrain | 5% | 10% VAT | None | 15.5% of CIF | 5 years (10-year extension not yet enacted) | LHD only |
| Kuwait | 5% | None | None | 5% of CIF | 5 years | LHD only |
| Israel | 7% (0% for EU, US, UK, Korea origin) | 18% VAT | Purchase tax 83% ± green and safety adjustments; luxury surcharge on high-priced cars | ~98–150% of CIF | 24 months from manufacture | LHD only |
| Jordan | 0% | 16% GST | Special tax 30% (petrol); service fees + 2.5% import fine | ~55% of CIF | 5 years (EVs 3 years) | LHD only |
South Asia
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| India | 70% BCD | 40% IGST (18% small cars) | AIDC 40% if CIF over $40k or over 3,000 cc; no cess | 101–194% of CIF | Used: 3 years (Mumbai port only) | RHD only |
| Sri Lanka | 20% + 50% surcharge on duty | 18% VAT + 2.5% SSCL | Excise per cc (often more than the CIF); Luxury Tax 100% of CIF above Rs 5 Mn | ~120–330% of CIF | Used: 3 years | RHD |
| Bangladesh | 25% CD + 5% RD | 15% VAT + 7.5% AT | Supplementary duty 0–500% by cc; 5% AIT; 1% landing charge | 137–1,018% of CIF (~226% at 1,601–2,000 cc) | Used: 5 years | RHD only |
East Asia
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| Japan | 0% | 10% consumption tax | None at the border; recycling fee at registration | ~10% of CIF | None | RHD or LHD |
| South Korea | 8% (0% from US, EU, UK) | 10% VAT | Consumption tax 5% + education tax 30% of it; 7% acquisition tax at registration | ~27% of CIF + acquisition tax | None | LHD (RHD not registrable) |
| Taiwan | 17.5% | 5% business tax | Commodity tax 25% (≤2.0 L) or 30%; 10% luxury tax at NT$3M+ taxable value | ~54% of CIF | None | LHD only; China-built cars banned |
| Mongolia | 5% (0% Japan with EPA certificate) | 10% VAT | Fixed excise by engine size and age (₮2.3M for a new 1.5–2.5 L car) | ~18% of CIF (new car) | None (excise rises steeply with age) | LHD or RHD |
| China | 15% (US origin pays more) | 13% VAT | Consumption tax 1–40% by engine size (5% at 1.5–2.0 L); 10% purchase tax at registration | ~37% of CIF at the border (~49% with the 10% purchase tax at registration) | New only (used imports banned) | LHD only |
| Hong Kong | 0% (free port) | None | First Registration Tax 46/86/115/132% in marginal bands | ~60% of CIF | None (emission standard at registration) | RHD |
Southeast Asia
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| Singapore | 0% (free port) | 9% GST | Excise 20% of OMV; ARF 100–320% of OMV; COE by auction | ~150% of CIF + COE | Used: max 3 years | RHD |
| Malaysia | 30% (0% ASEAN, Japan) | 10% sales tax | Excise 60–105% by engine size and body type (80% for a 1.8–2.0 L car) | ~157% of CIF | Used: 1–5 years (classic 35+) | RHD |
| Indonesia | 50% (0% ASEAN) | 12% VAT | Luxury tax (PPnBM) 15–95% by CO2 and engine size; 10% income tax prepayment | ~117% of CIF | New only (used imports banned) | RHD |
| Philippines | 30% (20% Japan; 0% ASEAN, Korea) | 12% VAT | Excise 4/10/20/50% on landed value (whole-value brackets) | ~75% of CIF | New only (used imports banned) | LHD |
| Thailand | 80% (0% Australia, NZ) | 7% VAT (extension pending; statutory 10%) | Excise 13–50% by CO2 and engine size, plus 10% interior tax on the excise | ~166% of CIF | New only (used imports banned) | RHD |
| Cambodia | 35% (0% ASEAN) | 10% VAT | Special tax 20–55% (50% for 1.0–3.0 L) | ~123% of CIF | None (used allowed) | LHD only (RHD banned) |
Oceania
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| Australia | 5% (0% from FTA partners incl. Japan, Korea, US, Thailand, China) | 10% GST | Luxury Car Tax 33% above A$80,809 | ~16% of CIF | No customs age cap (ADR compliance required) | RHD (LHD needs conversion) |
| New Zealand | 0% | 15% GST | Clean Car Standard charge NZ$15 per g/km of CO2 over target (new cars) | ~17% of CIF | None | RHD (LHD: 20+ years, permit or conversion) |
| Fiji | 5% fiscal duty | 12.5% VAT | Excise 15%; FJ$10,000 levy above 3.0 L | ~35% of CIF | Used: max 8 years (hybrid 5) | RHD only |
Europe
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| UK | 10% (0% for FTA origins, e.g. EU, Japan, Korea) | 20% (on CIF + duty) | First-year VED at registration, CO2-banded (£1,410 at 151–170 g/km) | ~32% of CIF + first-year VED | None; IVA test if under 10 yrs without UK/EU approval | RHD; LHD legal (headlamp + mph changes) |
| Switzerland | 0% (all origins since 2024) | 8.1% | 4% automobile tax; CO2 sanction CHF 95/g above target on new cars | ~29–44% of CIF | None | LHD and RHD both accepted |
| Germany | 10% EU MFN | 19% | None at registration (annual Kfz-Steuer only) | ~31% of CIF | None | LHD |
| France | 10% EU MFN | 20% | CO2 malus from 108 g/km (cap €80,000); mass malus above 1,500 kg | ~32% of CIF + malus | None | LHD |
| Netherlands | 10% EU MFN | 21% | BPM at registration: €14,538 + €594/g above 155 g/km | ~71–145% of CIF | None | LHD |
| Belgium | 10% EU MFN | 21% | Regional registration tax (power, CO2, Euro class) | ~33% of CIF + regional tax | None | LHD |
European Union — VAT and Registration Tax by Member State
Every EU member state charges the same 10% EU MFN duty on a non-preferential passenger car, so the differences below come from VAT and national taxes at first registration (see the EU import guide) (burden as % of CIF for a new 2.0-litre petrol car at USD 30,000 CIF, 140–180 g/km CO2).
| Member State | Import Duty | VAT | Registration / Purchase Tax at First Registration | Total Tax Burden |
|---|---|---|---|---|
| Austria | 10% | 20% | NoVA: (CO2 − 112) ÷ 5 % of net value, max 50%, less €350 | ~37–46% |
| Belgium | 10% | 21% | Regional tax on power, CO2 and Euro class, varies by region | ~33% + regional tax |
| Bulgaria | 10% | 20% | None; admin fees only | ~32% |
| Croatia | 10% | 25% | One-off CO2 and value tax, varies by vehicle | ~37.5% + one-off tax |
| Cyprus | 10% | 19% | No excise (abolished 2019); €150 registration fee | ~31% |
| Czech Republic | 10% | 21% | None; admin fees only | ~33% |
| Denmark | 10% | 25% | Registration tax: value tiers (~25% / 85% / 150%) plus a CO2 charge — the EU's highest | ~37.5% + registration tax (can exceed duty + VAT) |
| Estonia | 10% | 24% | Registration fee since 2025, varies by region | ~36% + fee |
| Finland | 10% | 25.5% | Autovero: CO2-based % of retail value, rates vary by vehicle | ~38% + autovero |
| France | 10% | 20% | CO2 malus from 108 g/km (cap €80,000); mass malus above 1,500 kg | ~32% + malus |
| Germany | 10% | 19% | None (annual tax only) | ~31% |
| Greece | 10% | 24% | Registration tax collected at customs: value slices × CO2 factor (outside the VAT base) | ~63–66% |
| Hungary | 10% | 27% | HUF 47,000 × power multiplier (1–9) at registration | ~40% + registration tax |
| Ireland | 10% | 23% | VRT 7–41% of open-market selling price by CO2 band, plus NOx levy | ~35% + VRT |
| Italy | 10% | 22% | IPT €3.51 per kW above 53 kW (+ up to 30% provincial); ecotassa only above 190 g/km | ~35–36% |
| Latvia | 10% | 21% | €110 natural-resource tax + first annual tax | ~34% |
| Lithuania | 10% | 21% | Registration pollution tax, varies by region | ~33% + tax |
| Luxembourg | 10% | 17% | None (annual tax only) | ~29% |
| Malta | 10% | 18% | One-off tax on value, CO2 and age, rates vary by vehicle | ~30% + registration tax |
| Netherlands | 10% | 21% | BPM: €14,538 + €594/g above 155 g/km (2026) | ~71–145% |
| Poland | 10% | 23% | Excise (akcyza) 3.1% at customs for petrol up to 2,000 cc, inside the VAT base | ~39.5% |
| Portugal | 10% | 23% (mainland) | ISV at customs: engine-size + CO2 tables, inside the VAT base | ~54–68% |
| Romania | 10% | 21% | None | ~33% |
| Slovakia | 10% | 23% | None for private cars | ~35% |
| Slovenia | 10% | 22% | DMV at customs: CO2 + Euro-class charge (about €60–260 here) | ~35% |
| Spain | 10% | 21% | IEDMT 0–14.75% by CO2 band; regions may add up to 15% of that rate | ~33% + IEDMT |
| Sweden | 10% | 25% | Malus as a higher annual tax in years 1–3 (no one-off tax) | ~37.5% + malus |
Americas
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| United States | 2.5% MFN + 25% Section 232 (15% all-in for Japan/EU) | No federal VAT; state sales tax 0–11.5% at registration | MPF 0.3464%, HMF 0.125%; gas-guzzler tax below 22.5 mpg | ~28–43% of CIF | Under 25 yrs must meet FMVSS/EPA | LHD |
| Canada | 6.1% MFN (free for FTA origins); 21.25% surtax on US-origin | GST 5% + provincial 0–10% at registration | AC excise CAD 100; Green Levy from 13 L/100 km | ~12–22% of CIF (US-origin ~28–40%) | Non-US/Mexico vehicles under 15 yrs inadmissible | LHD |
| Trinidad & Tobago | 43.75% (petrol 1,600–2,000 cc) | 12.5% | Motor Vehicle Tax TTD 15/cc (1,800–1,999 cc); TTD 37.50/cc from 2,000 cc | ~77–78% of CIF | Used cars 6 yrs (import licence) | RHD (conversion accepted) |
| Barbados | 45% | 17.5% | Excise 120% (1,800–2,000 cc, value over BBD 45,000); environmental levy BBD 300 | ~275% of CIF | 4 yrs / 50,000 km | RHD |
| Jamaica | 20% | GCT 15% | Special consumption tax 20% (1,001–2,000 cc); EPL 0.85%; admin fee JMD 63,250 | ~68% of CIF | 6 yrs (cars) | RHD |
| Guyana | 45% | 14% | Excise 10% (1,501–2,000 cc, under 4 yrs); 110% above 2,000 cc | ~82% of CIF | 4+ yrs taxed at flat rates; 8-yr rule under review | RHD |
| Chile | 6% MFN (0% for most FTA origins) | IVA 19% | Green tax at first registration (fuel economy + NOx formula, ~4% here) | ~30% of CIF | New only: current or next model year (prior year until 30 April) | LHD only |
Central Asia & Caucasus
| Country | Import Duty | VAT/GST | Key Additional Levies | Total Tax Burden | Age Limit | Steering |
|---|---|---|---|---|---|---|
| Armenia | 15% (new) | 20% VAT | None (no car excise or recycling fee) | 38% of CIF | None | LHD (RHD must be converted to register) |
| Georgia | 0% | Exempt (passenger cars) | Excise GEL 1.50 per cc (new LHD); 3× for RHD or over 6 years | ~3–4% of CIF | None (Euro 5 needed to register) | LHD (RHD allowed at 3× excise) |
| Kazakhstan | 15% | 16% VAT | Recycling fee, clearance and registration fees; excise over 3,000 cc; 10% luxury excise at KZT 77.85 Mn+ | ~39–44% of CIF | Private buyers: 3 years minimum | LHD only |
| Azerbaijan | USD 0.40–0.70 per cc (new) | 18% VAT | Excise by cc; small customs fees | ~23–37% of CIF | None (Euro 4 minimum) | LHD only |
† Zambia's figures come from earlier research and have not been re-verified for this edition. Use CarImport.AI for a current figure.
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Analysis and Insights
The Global Duty Spectrum
For the same car, the cost of importing varies from about 4% of CIF to about 300%, and to more than 1,000% for big engines in Bangladesh. Three groups emerge.
Low-tax markets (under 25%): Georgia charges no import duty and no VAT on passenger cars, only a per-cc excise of about 4% of CIF. Kuwait and Qatar charge a flat 5% duty with no VAT. Japan (10% consumption tax, 0% duty), the UAE and Oman (about 10%) and Bahrain (15.5%) come next. Australia (about 16% below the luxury car tax threshold), New Zealand (about 17%), Mongolia (about 18%) and Saudi Arabia (about 21%) complete the group.
Moderate-tax markets (25–70%): Most of the EU (about 29–40% before registration taxes), the UK (about 32%), Switzerland, South Korea, Chile and Azerbaijan sit at the lower end. Fiji (35%), China (about 37% at the border), Armenia (38%), Kazakhstan (about 39–44%) and most of West and East Africa follow. Senegal, Côte d'Ivoire, Ghana, DR Congo, Nigeria, Uganda and Tanzania all fall between about 45% and 64%. Taiwan (about 54%), Jordan (about 55%), Hong Kong (about 60%) and Jamaica (about 68%) round out the group.
High-tax markets (over 70%): This group includes the Philippines (about 75%), Trinidad & Tobago (about 77%), Guyana (about 82%) and Kenya (about 92–116% since its duty rose to 35%). Next come Mauritius, Indonesia (about 117%), Israel (about 124% at MFN), Cambodia (about 123%) and Seychelles. India (about 138%), Singapore (about 150% before the COE), Malaysia (about 157%) and Thailand (about 166%) are higher again. Bangladesh (about 226%), Barbados (about 275%) and Sri Lanka (about 295%) top the reference-car ranking. These markets either protect local assembly (India, Thailand, Indonesia, Malaysia) or rely on vehicle taxes for revenue (Caribbean and island states). There, the taxes can exceed the price of the car itself.
The EV Advantage — and Where It Ended
Electric vehicles still get large concessions in many markets:
- Georgia: a left-hand-drive BEV pays no excise, so it pays no border tax at all
- Fiji: BEVs are free of fiscal duty and excise, paying 12.5% VAT only (vs 35% for petrol)
- Seychelles: BEVs pay no excise and no environmental levy, about 15% of CIF instead of 100%+
- Cambodia: since 1 April 2026, a BEV pays 0% duty and 10% special tax, about 21% vs about 123% for petrol
- Philippines: BEVs, hybrids and plug-in hybrids pay 0% duty from any origin until 2028, and BEVs pay no excise
- Taiwan: BEVs are exempt from commodity tax on the first NT$1.4 million of value until 2030, about 23% vs 54%
- Jordan: the special tax is 10% for a BEV (vs 30% petrol, 20% hybrid), about 31% of CIF
- Nigeria: from 1 July 2026 BEVs pay no import levy and no Green Tax, about 40% vs about 52%
- India: BEVs pay 5% IGST instead of 40%, about 79% of CIF at or below USD 40,000
- Australia: BEVs and PHEVs below the fuel-efficient car limit (A$91,661) are duty-free from any origin
Several incentives have ended in the past year, so older articles will mislead you:
- Malaysia: the CBU BEV exemption expired on 1 January 2026. A BEV now pays 30% duty, 10% excise and 10% sales tax
- Indonesia: the BEV duty holiday expired on 31 December 2025. A BEV now lands at about 83% of CIF
- Hong Kong: the First Registration Tax concession for private electric cars ended on 31 March 2026
- Oman: the 0% duty and 0% VAT incentive for BEVs lapsed on 30 June 2026
- Azerbaijan and Kazakhstan: VAT exemptions for EVs ended on 1 January 2026
- Bangladesh: used electric vehicles of any age have been banned since 24 August 2026
Age Restrictions: The Hidden Barrier
Before any tax applies, an age rule can make an import impossible:
New vehicles only (used imports banned or permit-only): China, Indonesia, the Philippines, Thailand, South Africa (permit only) and Chile (current or next model year only)
Strictest used-vehicle limits (under 5 years): Israel (24 months from manufacture, for every import), Sri Lanka (3 years), Singapore (3 years), Mauritius (about 3 years), Barbados (4 years) and Malaysia (1–5 years)
5–10 years: Bangladesh, Côte d'Ivoire, Jordan, Saudi Arabia, Qatar, Bahrain and Kuwait (5 years), Jamaica and Trinidad & Tobago (6 years), Oman (under 7 years), Kenya, Senegal and Fiji (8 years; 5 for hybrids in Fiji), Nigeria (9 years), Ghana (10 years, with penalties beyond) and the UAE (10 years)
Over 10 years or no fixed limit: Uganda (15 years), and no general age limit in Japan, South Korea, Taiwan, Mongolia, Hong Kong, New Zealand, the EU, the UK, Switzerland, Georgia, Armenia, Azerbaijan, Cambodia and Botswana. Kazakhstan works the other way: since December 2024 a private individual cannot import a car under 3 years old, because type approval for those vehicles is limited to companies.
Steering Side: Market Access
Right-hand drive required: Kenya, Tanzania, Uganda, South Africa, Namibia, Botswana, Zimbabwe, Mauritius, India, Sri Lanka, Bangladesh, Hong Kong, Singapore, Malaysia, Indonesia, Thailand, Fiji, Barbados, Jamaica and Guyana. Most of these are natural markets for RHD stock from Japan, Thailand, India and the UK.
Left-hand drive required: the GCC states, Israel, Jordan, South Korea, Taiwan, China, Cambodia, Chile, Azerbaijan, Kazakhstan and Côte d'Ivoire. The UAE registers LHD only; RHD vehicles enter Jebel Ali Free Zone for re-export, not for UAE roads.
Either side accepted: Japan, Mongolia, Switzerland and the UK (LHD needs headlamp and speedometer changes). Georgia accepts RHD but charges it three times the excise.
Where an RHD market needs a vehicle only built in LHD, professional conversion is the usual route. It adds cost and several weeks to the timeline.
Free Trade Agreements That Matter
An agreement only ever removes the customs duty. VAT, excise and registration taxes are charged regardless of where the car was built. The agreements that change the numbers most:
- UK: 0% duty for originating cars from the EU (TCA), Japan, Korea, Australia, New Zealand and other partners, which takes the burden from about 32% to 20%
- EU: 0% duty for originating cars from Japan, Korea, the UK and Turkey
- Israel: 0% duty for the US, EU, UK, Canada, Korea and other partners, though the 83% purchase tax still applies
- South Korea: 0% duty with origin proof for the US (KORUS), EU, UK, Canada, Australia and New Zealand
- Australia: free for qualifying origins under its agreements with Japan, Korea, the US, Thailand, China and others
- ASEAN (ATIGA): 0% duty between member states, for example Thailand-built cars into Malaysia, Indonesia, the Philippines and Cambodia
- Thailand: 0% duty on cars from Australia and New Zealand, and on Chinese-built BEVs under ACFTA
- GCC: 0% duty on GCC-manufactured cars with a GCC certificate of origin
- Chile: 0% duty for originating cars from the US, Japan, Korea, China, the EU, the UK and many others
Some agreements are narrower than they look. The India–UK CETA (in force 15 July 2026) gives its car concession through a quota available to manufacturers, not to private importers. In Jordan, Georgia, Hong Kong, Japan, New Zealand and Switzerland, duty on cars is already zero, so origin changes nothing.
Changes to Watch (Late 2026)
- China: the suspension of additional tariffs on US-built cars runs out on 10 November 2026. If it is not renewed, US-built cars move from 25% or 35% duty to 49% or 59%
- Jordan: the conformity rules in force since 1 November 2025 (RHD, salvage and EV age bans) are due for review on 15 November 2026
- Qatar: VAT has still not been introduced. A decision would change Qatar's position from 5% to over 10%
- UK: from 1 January 2027, EU-built electric cars need 55% originating content to keep 0% duty under the TCA
- Cameroon: the 50% taxable-value abatement for new BEVs is due to end on 31 December 2026
- Canada: the surtax on US-origin vehicles is under review
Key Takeaways
- Cheapest places to import a car: Georgia (about 4%), Kuwait and Qatar (5%), Japan (10%), the UAE and Oman (about 10%), Bahrain (15.5%), Australia (about 16%) and New Zealand (about 17%)
- Most expensive: Sri Lanka (about 295%), Barbados (about 275%), Bangladesh (about 226%, over 1,000% above 4,000 cc), Thailand (about 166%), Malaysia (about 157%) and Singapore (about 150% plus the COE)
- Duty is often the smallest part. In Israel, Hong Kong, Singapore, Mauritius and Seychelles, the main cost is a purchase, excise or registration tax that no trade agreement touches
- EVs still save heavily in most markets, but Malaysia, Indonesia, Hong Kong, Oman, Azerbaijan and Kazakhstan withdrew their EV concessions in the past year
- Check the age and steering rules first: China, Indonesia, the Philippines, Thailand and Chile accept new cars only, and Israel's 24-month limit applies to every import
- CIF is the usual valuation base, but not always. Hong Kong taxes the assessed taxable value at registration, and Israel's purchase tax is charged on CIF plus duty
Frequently Asked Questions
Q: Which country has the lowest car import duty? A: On a new 2.0-litre petrol car, Georgia has the lowest total tax at about 4% of CIF. It charges no customs duty and no import VAT on passenger cars, only a per-cc excise (tripled for right-hand-drive cars). Kuwait and Qatar follow at 5% (5% customs duty, no VAT). Japan charges 0% duty and 10% consumption tax.
Q: Which country has the highest car import duty? A: For the reference car (new, 1,800–2,000 cc, CIF USD 30,000), Sri Lanka is highest at about 295% of CIF, followed by Barbados at about 275% and Bangladesh at about 226%. For large engines Bangladesh goes far higher: a petrol car above 4,000 cc pays about 1,018% of CIF, driven by its 500% supplementary duty band.
Q: Are electric vehicles cheaper to import than petrol or diesel cars? A: In most countries, yes. Georgia, Fiji, Seychelles, Cambodia, the Philippines, Taiwan, Jordan and India all tax BEVs far below petrol cars. But several concessions ended recently: Malaysia's and Indonesia's on 1 January 2026, Hong Kong's on 31 March 2026 and Oman's on 30 June 2026. Use CarImport.AI to compare EV and petrol costs for a specific country.
Q: Do all countries use CIF value to calculate import duties? A: Most do: duty is charged on the cost of the car plus insurance and freight to the destination port. Exceptions matter. The US and Canada value goods on a transaction (FOB-style) basis. Hong Kong charges First Registration Tax on a Customs-assessed taxable value. Several countries (Azerbaijan, Georgia, Mongolia, Trinidad & Tobago) charge fixed amounts per cc or per vehicle, so the percentage burden falls as the car's value rises.
Q: What happens if my car is older than a country's age limit? A: In a strict market the vehicle is refused at the border and must be re-exported at the importer's cost. China, Indonesia, the Philippines and Thailand do not accept used cars at all. Israel refuses any car more than 24 months from manufacture. Other countries, such as Ghana, allow older cars but add penalties. Always check the age rule before you buy.
Q: How do free trade agreements affect vehicle import duties? A: An FTA can remove the customs duty, never the VAT, excise or registration taxes. In the UK, an EU- or Japan-built car with proof of origin pays 0% duty instead of 10%, cutting the total from about 32% to 20%. In Israel, the same agreement saves only about 15 points on a total above 120%, because the 83% purchase tax is untouched.
Q: Can I import a left-hand-drive car into a right-hand-drive country? A: It depends. The UK and New Zealand (for older vehicles) allow LHD with conditions. Japan and Mongolia accept both. Most right-hand-drive markets, including Kenya, India, Sri Lanka, Bangladesh, Malaysia, Thailand, Hong Kong and Fiji, require RHD, so an LHD-only model needs professional conversion before it can be imported and registered.
Calculate Your Exact Import Cost
The tables give the headline numbers for one reference car. Your actual landed cost depends on the specific vehicle: its HS classification, engine size, CO2, fuel type, age, value and origin. Two cars going to the same country can face very different bills.
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Sources: national customs tariff schedules, finance acts and gazette notices for each country, as compiled in the IPAS customs reference (verified October 2026). They include the Kenya Revenue Authority, Nigeria Customs Service, Ghana Revenue Authority, South African Revenue Service, Dubai Customs, ZATCA (Saudi Arabia), Israel Tax Authority, Jordan Customs, India CBIC, Sri Lanka Customs, Bangladesh NBR, General Administration of Customs of China, Hong Kong Customs and Excise Department, Japan Customs, Korea Customs Service, Singapore Customs and LTA, Royal Malaysian Customs, Indonesia DJBC, Philippines Bureau of Customs, Thai Customs, Australian Border Force, New Zealand Customs Service, Fiji Revenue and Customs Service, UK HMRC, European Commission DG TAXUD (TARIC), Swiss FOCBS, US CBP and USITC, Canada Border Services Agency, Chile Servicio Nacional de Aduanas, and the revenue authorities of Barbados, Jamaica, Trinidad & Tobago and Guyana.
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