Govt Plans New Taxes on Imported Electric Vehicles

Pakistan pushes for electric vehicles under its first-ever EV policy, aiming to cut the transport sector’s $9 billion import bill. Imported EVs will face higher duties, while locally made vehicles enjoy minimal or zero taxes.

Licenses for 17 three- and four-wheeled EVs and 77 electric motorcycles have been issued, with more in progress.

The government targets 2.2 million EVs by 2030, making up 30% of all vehicles. Subsidies of Rs 400,000 for three-wheeled EVs and Rs 80,000 for electric motorcycles will support adoption, funded by Rs 120 billion from the carbon levy.

Officials have identified 40 charging station locations nationwide, with new regulations to ensure charging availability at petrol pumps. Authorities also acknowledged the need to improve local EV quality to meet global standards.

Concerns over high electricity costs at charging stations were raised, prompting the Ministry of Power to provide clarification.

Read More: Govt to End Tax Exemptions on Locally Made Hybrid, Electric Vehicles and Bikes

This policy marks a major step toward boosting local manufacturing, promoting electric vehicles, and reducing reliance on imports.