Govt Offers Tax Cuts, Duty Relief for New Energy Vehicles

Jawad

12 Nov 2024

206

Govt Offers Tax Cuts, Duty Relief for New Energy Vehicles

The federal government has begun consultations on the New Energy Vehicle (NEV) Policy for 2025-30, aiming to reduce Pakistan’s carbon footprint. This policy targets a cleaner, more sustainable future by supporting the growth of the local NEV industry, reducing reliance on fossil fuels, and minimizing greenhouse gas emissions. The NEV initiative is a significant step toward positioning Pakistan as a proactive player in global efforts to combat climate change.

Focus on Local NEV Production and Emission Reduction

At the core of the NEV policy is an emphasis on fostering local NEV manufacturing, which is expected to lower import costs and promote domestic production of environmentally friendly vehicles. Key goals include the reduction of greenhouse gases and a decrease in the nation’s overall fossil fuel consumption. By prioritizing local production, the policy seeks to create new employment opportunities while paving the way for a cleaner transportation sector.

Incentives for Eco-Friendly Investments

To stimulate investment in eco-friendly technologies, the NEV policy includes several financial incentives. These incentives feature tax breaks, reduced import duties on NEV components, and green financing options to attract investors. This approach is designed to encourage both local and international businesses to invest in Pakistan’s NEV market, contributing to an accelerated transition toward sustainable mobility.

Infrastructure Development Led by EDB’s Proposals

The Engineering Development Board (EDB) has drafted the NEV policy, which includes plans for comprehensive charging infrastructure across the country. A significant component of this draft requires Oil Marketing Companies to install Level 3 chargers at 10 percent of their stations, while private companies will benefit from tax exemptions and discounted electricity rates for establishing charging points. The policy aims to establish a nationwide charging network to support the growing NEV population.

Battery Recycling and Heavy Vehicle Support

In addition to promoting NEVs, the policy mandates battery recycling standards and offers financial support for setting up recycling centers to ensure responsible disposal and reuse of NEV batteries. The policy also includes customs duty reductions on heavy commercial NEVs to encourage their adoption until local production becomes viable. By addressing both passenger and commercial vehicles, the policy aims for a balanced and widespread transition to green energy.

NEV tax cuts Govt duty relief New energy vehicles Tax incentives NEVs NEV import duties Govt tax breaks EV duty reductions NEV policy incentives Reduced NEV taxes Eco vehicle incentives

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