The federal government has decided to give major relief to the Electric Vehicle (EV) and Plug-in Hybrid Electric Vehicle (PHEV) cars from the toll tax on motorways and highways.
The government has planned to provide an exemption on the toll tax to the New Energy Vehicles (NEVs).
According to the media reports, this major initiative is a step to encourage the clean energy adoption and electric mobility in Pakistan, following the Auto Policy 2026-31.
The government has also announced to completely remove the Additional Custom Duties (ACD) from the imported or nationally manufactured EVs and PHEVs by the Fiscal Year 2029 (FY2029).
Moreover, the Regulatory Duties (RD) on the EVs and PHEVs will be reduced to 80 per cent till FY2030.
Read more: BYD to launch three new PHEV cars in Pakistan
The new policies of the government indicate a visible reduction in the tariffs on imports and assembly products.
Currently, the duties of the Completely Built Unit (CBU) are in the range of 50 to 100 per cent, while in the next five years, it will be reduced to 35 to 75 per cent.
Again, in the same timeline, the tariffs at the Completely Knocked Down (CKD) units used in the local assembly of cars, SUVs, and minivans will be decreased from 30 per cent to 20 per cent.
NEVs as described above typically include vehicles powered by alternative energy sources, including full battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and fuel cell vehicles (FCEVs).
The reforms aim to reduce the weighted average applied tariff to below six per cent by FY30.
The policy also ties NEV incentives to localisation requirements to support domestic manufacturing of electric vehicles.
Also read: Electricity to get cheaper in Pakistan, claims Awais Leghari
