The new budget brought good news to the public. At first, it was decided that the prices of vehicles up to 850cc will be going down because of enormous tax exemptions. Now, the government has prolonged the tax relief for cars up to 1000cc. It is all about electric cars now in Pakistan.
There will be no registration fee and tax on motor vehicles which are two-wheeler, three-wheeler, and heavy commercial electric vehicles (EVs). The public will have to wait for the new Auto Development Policy and Ev policy for benefits for four wheelers EVs
Tax Exemptions on EVs
- Decrease of the General Sales Tax (GST) percentage on locally gathered EVs from 17% to 1% for traveler cars with a battery pack of up to 50 kW and light marketable automobiles with a battery pack of up to 150 kW
- 8.5% GST on locally assembled and imported hybrid vehicles up to 1800cc and 12.75% on hybrid cars between 1801cc and 2500cc
- Zero Federal Excise Duty (FED) on locally assembled EVs
- Zero Value Added Tax (VAT) on the import of Completely Knocked Down (CKD) kits
- Only 1% tax on the import of EV parts
- 1% duty on the imports of charging equipment
All these tax concerns will be applied from 1s of July. The Pakistani Government has taken the initiative to encourage the manufacturers of vehicles to introduce EV technology in their cars listings. The tax exemptions will encourage the customers to purchase the environmentally friendly cars. Because of hardly any of EVs in Pakistan, Pakistan has a long way to go, .the new budget and new auto policies will bring good news.
