ISLAMABAD: The federal government has clarified that only high-value electric vehicles (EVs) will be subject to Federal Excise Duty (FED) under the new budget, which will come into effect on July 1, 2026.
The matter was discussed during a meeting of the National Assembly’s Finance Committee, where officials from the Federal Board of Revenue (FBR) briefed lawmakers on the proposed taxation framework for electric vehicles.
According to FBR officials, electric vehicles priced up to $75,000 will remain exempt from Federal Excise Duty. In local currency terms, EVs valued below approximately Rs20 million will not be subject to the new tax.
However, electric vehicles priced above $75,000, or roughly Rs20 million, will be liable to FED under the budgetary measures.
During the meeting, committee member Shahida Akhtar urged FBR officials to outline the government’s policy regarding electric vehicle charging infrastructure.
She noted that the expansion of EV adoption would remain challenging without a sufficient network of charging stations across the country, adding that Pakistan’s electricity supply issues also need to be addressed.
The government is expected to provide further details on the implementation of the new taxation policy and the development of EV infrastructure as the budget takes effect next month.
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