Sindh extends electric vehicle tax incentives until 2028

The Sindh cabinet has approved a two-year extension of tax and registration incentives for electric vehicles (EVs) to promote sustainable transport. The extension will be effective from May 30, 2026, through May 29, 2028.

Under the approved package, non-commercial electric vehicle owners will continue to pay a registration fee of Rs1,000 and an annual motor vehicle tax of Rs500. Electric motorcycles will be subject to a one-time, lifetime motor vehicle tax of Rs500. For larger electric vehicles with an engine capacity equivalent to 2,000cc or above, a luxury tax of Rs5,000 will apply. A penalty of Rs1,000 will be imposed for late registration.

Chief Minister Syed Murad Ali Shah stated that the policy aims to reduce the province’s dependence on imported fuel, lower carbon emissions, and mitigate urban air pollution. The decision also includes the approval of a framework from the Excise, Taxation and Narcotics Control Department to administer these concessions.