FBR Allows Duty-Free Imports of Electric 2-3 Wheelers

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The government of Pakistan has taken another step to promote electric vehicle technology in the country. The Federal Board of Revenue (FBR) has exempted Additional Customs Duty (ACD) on the import of electric 2-3 wheelers up to June 30, 2025.

The Completely Built-Up (CBU) units of the following EVs can now be imported free of ACD:

  • Electric auto-rickshaw
  • Electric motorcycle
  • 3-Wheeler electric-loader

The FBR has issued a notification on Wednesday, the 3rd of February, 2021, to amend S.R.O. 572(I)2020. Under the notification, there will be no more additional customs duty on the import, of electric vehicles falling under Pakistan Customs Tariff (PCT) codes 8703.8030 (electric auto rickshaw), 8711.6040 (electric motorcycle), and 8711.6060 (3-wheeler electric-loader).

EV Technology in Pakistan

Many international automotive markets are shifting to EV technology at a swift pace. Pakistani market is also taking the leap, slowly but surely. The Economic Coordination Committee (ECC) has already approved the EV policy for two and three-wheel electric vehicles a long time ago. Recently, ECC has also approved the EV Policy for 4-Wheelers

The waiver of Additional Customs Duty (ACD) and Value-Added Tax (VAT) on imports of EV (2-3 wheelers) is a great step forward in the direction of electric transformation of the auto market. The number of motorbikes, auto-rickshaws, and motorcycle rickshaws in Pakistan would easily be more than the number of cars. The replacement of these two and three-wheelers with e-bikes and e-rickshaws would significantly reduce the pollution in the country. 

Pakistan Railways is locating vacant plots beside railway stations to set up EV charging stations across the country. Thanks to the federal government, ECC, FBR, and Pakistan Railways, the local auto industry is headed in the right direction. Let’s see how things turn out in the future. 

Have you seen an e-rickshaw or e-bike in Pakistan? If yes, what did you think of the ride? Share with us in the comments.

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