Govt Launches Electric Vehicles with Zero Fee and Taxes

The federal government of Pakistan has offered various offers to the people of Pakistan in order to help them in elevating their economical position. The government has presented the federal budget in the national assembly and there are various good news for the general public. The government has extended tax relief for the cars up to 1000 cc. the government has presented many new EV technology with various benefits. The government has announced that there will be no registration fee and motor vehicle tax on the two-wheeler, three-wheeler and heavy commercial electric vehicles. The viewers are waiting for the news that Govt Launches Electric Vehicles with Zero Fee and Taxes. Now we wait for the coming auto development policy and EV policy for the advantage of four wheelers, EVs.

Tax Exemptions on EVs

The government has provided following incentives to EV segment in 2021-22 financial budget.

• The government reduced General Sales Tax GST rate on the locally assembled EVs from 17% to 1% for passenger vehicles with battery pack up to 50 kW and light commercial vehicles with battery pack up to 150 kW.
• The GST on locally assembled and imported hybrid vehicles of 8.5% up to the vehicle of 1800 cc and 12.75% on hybrid vehicles between 1801 cc and 2500 cc.
• There is zero Federal Excise Duty FED on the EVs, which are locally assembled.
• On the import of completely knocked down CKD kits, there is zero Value Added Tax VAT.
• On the import of EV parts, there is 1% tax.
• On the imports of the charging equipments, there will be 1% duty.
As this federal budget is announced for the financial year 2021-22 and it will be implemented from 01 July 2021.

The government of Pakistan has taken this initiative in order to encourage auto manufacturers to introduce the EV technology in the lineups of vehicle. The tax exemptions will encourage the customers to buy the environment-friendly electrically charged vehicles and now these vehicles will be encouraged to introduce in the country.