Indus Motor Company (IMC), the local assembler of Toyota vehicles, has raised concerns over the classification of range-extended electric vehicles (REEVs) in Pakistan, saying some competitors may be declaring such vehicles under categories that attract lower taxes.
The issue comes as Pakistan reviews the customs treatment of REEVs. A Customs Classification Committee had placed these vehicles under HS Code 8703.8090, the same classification used for battery electric vehicles. Industry stakeholders, including IMC and the Pakistan Automotive Manufacturers Association (PAMA), have challenged this treatment.
A REEV uses an electric motor to power the wheels, while a petrol engine works as a generator to recharge the battery. IMC and other industry representatives argue that this setup is technically a series hybrid rather than a fully electric vehicle. They have referred to international vehicle standards and the Harmonized System explanatory notes in support of their position.
The dispute is important because different classifications can result in different customs duties and taxes. PAMA had earlier raised concerns with the Federal Board of Revenue over the classification, including cases where the exporter and importer reportedly used different tariff codes.
IMC management said regulators, including FBR, are reviewing the matter and expects clarity soon.
