India and Pakistan Roll Out Major Fuel and EV Tax Incentives

The Indian government announced a full waiver of central excise duty on petrol blended with 22% to 30% ethanol (E22‑E30). The move eliminates the basic excise duty, additional excise duty and the road and infrastructure cess for these blends, provided they meet BIS IS 19850 standards and that GST is paid on the ethanol component. By promoting higher‑ethanol blends, India aims to lower crude‑oil import costs, support sugarcane and grain farmers, and cut carbon emissions.

Pakistan’s 2026‑27 budget introduced a zero‑percent customs duty on imported electric cars, SUVs and pickups valued up to Rs 20 million, with higher duties for pricier models. The package also maintains low duties on locally assembled EV components, extends sales‑tax exemptions for CKD kits, and offers subsidised financing for electric motorcycles and rickshaws. These measures are intended to make affordable EVs more accessible and boost domestic EV manufacturing.

Both policies seek to enhance energy security, stimulate local industry and reduce reliance on imported fossil fuels.