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Pakistan electric and hybrid vehicle tax policies

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2026-09-10 06:18 UTC → 2026-09-10 12:17 UTC · added removed

In the Sindh province, the cabinet approved a two-year extension of tax and registration incentives for electric vehicles (EVs), effective from May 30, 2026, through May 29, 2028. The package maintains low registration fees and annual motor vehicle taxes for non-commercial owners, while applying a luxury tax to larger vehicles with capacities of 2,000cc or above. Chief Minister Syed Murad Ali Shah noted the policy is intended to reduce fuel import dependence, lower carbon emissions, and mitigate urban air pollution. Expanding on these efforts at a national level, the Pakistani government drafted has prepared a draft of the Auto Mobile and Auto Parts Manufacturing Policy 2026-2031. Submitted This draft has been submitted to the Prime Minister and the International Monetary Fund (IMF), (IMF) with the draft proposes goal of integrating the domestic auto industry into the global supply chain. The proposed national policy includes significant tax reductions for EVs, including such as limiting sales tax to 1% and eliminating several other duties. The policy also seeks federal excise duty, capital value tax, and withholding tax. To improve affordability, the draft suggests increasing the financing limit for New Energy Vehicles from PKR 3 million to promote PKR 10 million and extending loan tenures from three to five years. For hybrid vehicles through vehicles, the policy proposes a phased reduction in import duties over five years years. For models above 1800cc, duties could drop from 50% to 30%, with similar reductions planned for smaller hybrid models, trucks, commercial vehicles, and aims buses. The overarching objective is to increase vehicle accessibility by raising financing limits. reduce dependence on imported petroleum, lower mobility costs, and encourage local manufacturing.

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  1. 2026-09-10 12:17 UTC Pakistan electric and hybrid vehicle tax policies
  2. 2026-09-10 06:18 UTC Pakistan electric and hybrid vehicle tax policies

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