From The Express Tribune · ZAFAR BHUTTA · · 1m 10s
Govt to levy up to 10% ADL on ICE vehicles
Pakistan government imposes 2-10% ADL on ICE vehicles to boost electric adoption.
In brief
Pakistan government imposes 2-10% ADL on ICE vehicles to boost electric adoption. Pakistan will charge 2-10% Automotive Development Levy on ICE vehicles to accelerate electric vehicle adoption while maintaining lower sales tax for electric vehicles. Originally reported by The Express Tribune.
New policy on vehicle taxes
Pakistan government will impose 2-10% Automotive Development Levy on imported and locally manufactured internal combustion engine vehicles.
Tax exemptions for small vehicles
Vehicles up to 2000cc and public service vehicles get minimum levy while 2/3-wheelers and tractors under 1000cc are exempt.
Electric vehicle tax rates
Pure electric vehicles get 1% sales tax while plug-in hybrids and range extenders face 6% and 9% respectively.
Imported vehicle tax rules
Imported NEVs above $50,000 face standard sales tax while others get 1% sales tax.
FED and SED changes
Federal Excise Duty and Special Excise Duty will be eliminated on small ICE vehicles to reduce NEV price gap.
Credit limit increase
State Bank of Pakistan will raise vehicle credit limit to Rs10 million for electric vehicles.
Customs duty for BEVs
BEVs under $15,000 face 5% customs duty rising to 20% in FY29 with conditions for lower rates.
The takeaway
Pakistan will charge 2-10% Automotive Development Levy on ICE vehicles to accelerate electric vehicle adoption while maintaining lower sales tax for electric vehicles.
