Islamabad — Leading electric bike manufacturers in Pakistan are urging the government to roll back its recent decision to increase sales tax on EV bikes from 1% to 18%. The industry warns that the steep hike could threaten the progress made in sustainable transport over recent years. Business Recorder reported.
Industry Raises Alarm Over Affordability
During a meeting with Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, manufacturers voiced concerns that the tax increase would drive up prices and put electric bikes out of reach for many consumers. They argued this could dampen demand and stall momentum in the EV sector.
The manufacturers also warned that the policy shift runs counter to government goals around reducing carbon emissions, cutting oil imports, and encouraging local production.
Policy Shift Could Undermine EV Progress
After initial incentives helped spur the growth of electric two-wheelers in Pakistan, the sudden reversal has left stakeholders uncertain. Industry representatives said they had hoped for a more consistent and supportive policy framework to continue investing in local assembly and supply chains.
Electric bikes, seen as a cleaner and more cost-effective alternative to petrol-powered two-wheelers, had gained traction due to earlier government backing and subsidies.
Government Response and Next Steps
In response, Haroon Akhtar Khan assured the industry that the government is still committed to supporting EV adoption. He directed officials at the Engineering Development Board (EDB) to explore ways to cushion the impact and keep the market on track.
The pushback comes as Pakistan prepares for the second phase of its EV policy, which focuses on local manufacturing and environmental impact reduction. Stakeholders are calling for policy stability to attract investment and maintain the sector’s growth.
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