Urdu Report Desk
Pakistan has proposed major tax incentives and financial support measures to promote electric and new energy vehicles under the draft Automotive and Auto Parts Manufacturing Policy 2026-31.
Under the proposed policy, buyers of new energy vehicles could receive financing of up to Rs. 10 million for a period of five years. The plan also includes measures to expand charging infrastructure, battery-swapping facilities and battery-as-a-service systems.
Tax Incentives for Locally Produced Vehicles
The draft policy proposes preferential General Sales Tax rates for new energy vehicles manufactured in Pakistan.
Eligible vehicles priced up to $75,000 could also be exempted from Federal Excise Duty, Capital Value Tax and Withholding Tax, subject to the proposed conditions.
Lower Customs Duty on Electric Vehicles
The government has also proposed reducing customs duty on completely built battery electric vehicles priced up to $15,000.
Under the proposal, a 5 percent customs duty would apply to these vehicles during fiscal years 2026-27 and 2027-28.
Levy Proposed on Conventional Vehicles
To support the shift from internal combustion engine vehicles to new energy vehicles, the draft policy proposes introducing an Auto Development Levy.
The revenue generated through the levy is proposed to support the transition to new energy vehicles, research and development, and the development of local auto parts manufacturing.
Focus on Local Production and Charging Infrastructure
The proposed policy also aims to increase local manufacturing and value addition of electric vehicles and their components.
It further focuses on expanding charging stations, battery-swapping facilities and battery-as-a-service systems across the country and Policy Still Under Consideration.
Read more:
Toyota Corolla Altis Facelift Spotted in Pakistan Ahead of Official Launch – urdureport.com
EV Prices in Pakistan May Rise as Government Considers 18% Sales Tax – urdureport.com
