# Govt to levy up to 10% ADL on ICE vehicles

> Pakistan government imposes 2-10% ADL on ICE vehicles to boost electric adoption.
- Title: Govt to levy up to 10% ADL on ICE vehicles | Shortify
- Summary: Pakistan government imposes 2-10% ADL on ICE vehicles to boost electric adoption.
- Keywords: automotive development levy, internal combustion engine vehicles, electric vehicles, sales tax, pakistan, federal board of revenue, state bank of pakistan, nevs, The Express Tribune
- Source: The Express Tribune — https://tribune.com.pk/story/2640182/govt-to-levy-up-to-10-adl-on-ice-vehicles
- Author: ZAFAR BHUTTA
- Published: 2026-11-13T22:07:22+00:00
- Read time: 1 min
- Topics: automotive development levy, internal combustion engine vehicles, electric vehicles, sales tax, pakistan, federal board of revenue, state bank of pakistan, nevs, news
## 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.
## Key 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.