Government has approved Pakistan’s electric vehicle Policy for cars

In 2020 Pakistan’s Budget, the government of Pakistan had approved electric vehicle policy for 2 wheeler and heavy vehicles. At that time, Pakistan’s government did not release any policy for Electric cars. In September 2020, Fawad Choudary had said, The government of Pakistan was making the electric vehicle policy for electric cars. Soon the government will release an electric vehicle policy for Electric cars.

Related News: 4 upcoming Sazgar BAIC cars in Pakistan (2021)

Now on 16 December 2020, we have gotten news that the government of Pakistan has released an Electric vehicle policy for cars. Hamad Azhar ( Federal Minister for Industries and Production ) has also tweeted about Pakistan’s first Electric Vehicle Policy for cars.

Main Points of EV Policy (4-Wheelers):

Following are the main points of EV Policy (4-Wheelers):

  • The new policy will remain in force till June 30, 2026.
  • There will be 1% Customs Duty (CD), no Additional Custom Duty (ACD) or Regulatory Duty (RD) or Value Added Tax (VAT) on EV specific parts for Completely Knocked Down (CKD) units.
  • There will be 25% CD, and zero ACD or RD on Completely Built Units (CBUs) import.
  • Duty-Free import of plant and machinery for EV 4-Wheelers.
  • Every Company can import 100 CBUs with 50% CD.
  • 1% CD on EV Chargers.
  • Import of CKD in small cars and sport utility with 50kWh battery or below, and Light Commercial Vehicles (LCVs) with 150kWh battery would be exempted from Sales Tax, and VAT on imports, but with 1% Sales Tax on Sales. 
  • No Federal Excise Duty (FED) on Electric Vehicles
  • Toll Tax on National Highways (NHA) would be 50% for EVs
  • Special Window at State Bank of Pakistan (SBP) for EV car financing at reduced rates
  • The federal government will request provincial governments to exempt EVs from Registration Fee and Annual Renewal Token.

Javed Afridi ( the owner of MG motors in Pakistan ) has also started the booking of MG ZS EV. The MG ZS EV will become the first electric vehicle in Pakistan. Below you guys can see the tweet of Javed Afridi.

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