The government has announced significant incentives for electric vehicles (EVs), including reduced sales tax, increased financing limits and extended repayment periods, as part of efforts to promote affordable transportation and reduce the country’s petroleum import bill.
Speaking to the media, Federal Minister for Information and Broadcasting Attaullah Tarar said electric vehicles were environmentally friendly, and the government wanted to make affordable transportation accessible to ordinary citizens.
He said reducing the petroleum import bill was a key government priority, adding that efforts were underway to ensure the availability of quality and affordable vehicles. He expressed confidence that the new measures would help reduce inflation and provide relief to the public.
Tarar said protectionist policies had remained in place for decades, but the government’s current focus was on providing relief to ordinary citizens. He cited the growing use of electric motorcycles, particularly among women, as an example of the benefits of promoting affordable electric mobility.
Meanwhile, Haroon Akhtar Khan, Adviser to the Prime Minister on Industries and Production, said Prime Minister Shehbaz Sharif had significantly expanded financing facilities for electric vehicles.
He explained that the previous financing limit of Rs3 million, with a repayment period of three years, had been increased to Rs10 million, while the repayment period had been extended to three to five years.
He added that vehicles priced at $50,000, although classified as luxury vehicles, would also be eligible for duty concessions. Work was also underway to establish charging stations for hybrid and plug-in hybrid vehicles.
According to the adviser, sales tax on electric vehicles would be imposed under three categories: 1%, 3% and 9%.
He said the new auto policy aimed to make vehicles more affordable, except for luxury models, while placing greater emphasis on local manufacturing and the development of the automotive industry.
Under the policy, export targets would be established, with a 5% incentive to be offered during the first year to encourage exports. Haroon Akhtar further said the new auto policy was awaiting approval from the International Monetary Fund (IMF). He added that local auto parts manufacturers would be given opportunities to access international markets, while the use of electric motorcycles was also gaining popularity in the country.
