ISLAMABAD: The government has granted sales tax exemption to locally manufactured hybrid electric vehicles (HEVs) with engine capacities of up to 2,000cc.
The Ministry of Finance has amended the sales tax rules concerning hybrid electric vehicles, bringing locally manufactured hybrid vehicles with engines of up to 2,000cc under the sales tax exemption.
The ministry has also issued a notification formalising the exemption.
According to the notification, the amended sales tax provisions will take effect immediately.
Read also: Hybrid Cars Likely to Become Cheaper in Pakistan
Pakistan’s proposed new auto policy has recommended a phased reduction in taxes on the import of hybrid vehicle over the next five years.
According to details, the Auto Policy 2026–2031 has been prepared, and its final draft has been submitted to the prime minister for consideration.
According to the draft policy, there has been a suggestion to reduce duties on imports of hybrid vehicles having engine capacity above 1,800cc in phases during the next five years.
In case of hybrid vehicles having capacity above 1,801cc, duties are suggested to decrease from 50% to 30% over five years. Likewise, for hybrid vehicles having engine capacity between 1,501cc to 1,800cc, a decrease in duties from 50% to 30% has been suggested.
