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Government’s New Electric Vehicle Policy, Waives 50% Tax

Government’s New Electric Vehicle Policy, Waives 50% Tax

For a sustainable future, we must look at sustainable options. Electric cars are seeing an evolution in speed, design, and, efficiency. And as the consumers and economies are realizing the benefits of owning electric cars, a surge in the demand has been observed.

50% Waiver

Earlier, ministries of production, Hammad Azhar, has stated that the government has planned to give up to 50% tax exemptions on four-wheel electric vehicles, under the freshly proposed electric vehicle policy. Does this mean we will see electric vehicles in Pakistan? I hope we do!

The announcement was made on Tuesday while briefing the National Assembly Standing Committee on industries and production. Hammad shared with the members that the government has decided to waive off 50 per-cent taxes that are applicable to 1800-cc electric and hybrid cars.

The minister also disclosed that the government has decided to waive of 25 per-cent taxes on cars that have an engine capacity of over 1800-cc, adding that the government has also planned to waive of the registration fee and annual renewal of electric vehicles.

He also highlighted that the government has planned to announce a 5-year policy for the four-wheel vehicles, in the coming 2 weeks. It will also waive off the 50 per-cent duty on the import of four-wheel vehicles. Whereas, the electric vehicle policy for the two and three-wheelers is already in motion.

What Does This Mean?

These are some of the great measures the government is finally taking. We’ve been long waiting for something like this to happen as we are started to see more and more increase in the import of cars, electric vehicles, and luxury vehicles in Pakistan.

Hammad Azhar further pointed out that the government had been in talks with different countries for the manufacturing of electric vehicles. We’ve already seen KIA and FAW capture the market in Pakistan and soon we will see electric car manufacturers here in Pakistan as well. However, the government will try and maintain a balance while finalizing the policy and also stressed upon the government not using any existing players in the market in the automobile industry.