The Sindh cabinet has approved a two-year extension of tax and registration incentives for electric vehicles (EVs) to encourage their use across the province.
The decision was taken during a cabinet meeting chaired by Sindh Chief Minister Murad Ali Shah, where the Excise Department presented a proposal regarding incentives for electric vehicles.
Under the decision, existing tax and registration incentives for non-commercial electric vehicles will remain in place until May 29, 2028. The extended incentives will apply retrospectively from May 30, 2026.
The cabinet approved maintaining the registration fee for electric vehicles at Rs1,000. The annual motor vehicle tax for non-commercial electric vehicles will remain at Rs500.
For electric motorcycles, the cabinet approved a one-time lifetime motor vehicle tax of Rs500. An electric vehicle with an engine capacity of 2,000cc or above will be subject to a luxury tax of Rs5,000.
A Rs1,000 fine will also be imposed for delays in registering an electric vehicle.
Speaking at the meeting, Murad Ali Shah said promoting electric vehicles would help reduce reliance on imported fuel, cut carbon emissions and tackle air pollution.
He said encouraging the use of electric vehicles was an important part of the government’s strategy, adding that continuing tax incentives was crucial to attracting investment in the electric mobility sector.
The chief minister said the promotion of electric vehicles would not only help protect the environment but also improve air quality in the province.