Monday, July 15, 2024

Hybrid Vehicles Likely to Get Cheaper in Pakistan as Govt Announces Huge Tax Relief

Great news for Pakistan’s hybrid automobile market as the fiscal budget for 2023-24 has been revealed. The budget papers state that the customs tax on imported hybrid electric vehicles (HEVs) in fully assembled form will now be only 1%. Furthermore, there is a decrease in the customs tax for imported HEVs in completely knocked down units.

According to the budget document, the customs tax for importing HEV components in knocked down units is now 4%, while the tax for importing plug-in hybrid electric vehicle (PHEV) components in knocked down units is 3%. These changes are expected to have a positive impact on the prices of hybrid vehicles in the Pakistani market and encourage new businesses to enter the hybrid car industry.

In addition, the duty and taxes imposed on vehicles above 1300 cc that are manufactured in Asia are being eliminated. Furthermore, there is a proposal to reduce the customs duty rate on the import of non-locally manufactured commercial vehicles in the form of partially assembled components from 10% to 5%.

Overall, these changes aim to boost the hybrid automobile sector in Pakistan, make hybrid vehicles more affordable, and attract investments in the industry.

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