Incentives On The Import Of Hybrid Vehicles Provided By Pakistan Government

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PKR 3 million to 3.5 million

CNG is cheap, but scarce. And to counter that, Pakistan government is always trying to find ways and taking steps to accommodate auto consumers. One of those steps is bringing duties of hybrid vehicles down. Even in Japan, the government of Japan provides incentives to its auto consumers, and as a result, as much as 40pc passenger cars sold in Japan as a result of those incentives. In Pakistan, we have incentives on the imports of the hybrid vehicles as well. The government of Japan even donated cars to our government as a step to promote hybrid cars sales by injecting them the Pakistani governmental departments. Donated Toyota Prius cars were divided among National Highway and Motorway Police and other ministries.

For the budget of 2012, government reduced the import duty on hybrid vehicles by 25 pc.

“Import of the Hybrid Electric Vehicles (HEV) has been exempted from customs duty, sales tax and withholding tax which are in excess of 75 percent of the applicable tax rates,” a sources told BR.

But then in 2013, it was proposed that owners having CNG vehicles will be facilitated to import hybrid cars of upto 1800cc without paying any duty, however, duty would be imposed if imported hybrid cars have engines larger than 1800cc to discourage the use of CNG vehicles. The budget in 2013 shaped the import duties like as follows:

  • Electric/Hybrid vehicles up to 1200cc: NO DUTY, NO SALES TAX
  • Electric/Hybrid vehicles from 1201cc to 1800cc: Reduced by 50%
  • Electric/Hybrid vehicles from 1801 to 2500cc: Reduced by 25%
  • Above 2501cc: Zero reduction

There were rumors that duties will be further reduced but government kept the import duty tariff unchanged for the fiscal year of 2015­-16. Imported hybrid cars are definitely seeing some major success in local used car market. Toyota Prius has ruled the market for a long time but now the scene is shifting to Honda Vezel. Vezel is gaining some major traction in local car market. You can find a Vezel from PKR 3 million to 3.5 million, depending on the variant, model, color etc.

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  1. twister286 says

    Mitsubishi iMiev and Nissan Leaf are not hybrids, they’re plug-in electric vehicles.

  2. Sarfraz says

    Quality of article is really low, the author copy pasted the picture from an earlier article. cars shown in below 1200cc are not hybrid but electric cars,since picture has been taken from international source cars shown are irrelevant to local market. Prius shown in 1500cc category because the source article was so old that at that time (before 2012)prius came in 1500cc category,no aqua,vezel etc. Admins should read the contents before allowing such pathetic articles.

  3. Identityremainsunknown says

    Also he is stating that Prius’s Market is being captured by Honda Vezel which is totally wrong because Prices of both Vezel and Prius are totally different. Honda Vezel is out of reach of a Middle Class person because it starts from 30,00,000 while Prius starts from around 20-23,00,000PKR thus making it more affordable for a Middle Class person. Also he forgot to mention that Toyota Aqua is the car that is stealing the market of Hybrids because of the fact that its priced around 16-20,00,000PKR thus making it more affordable for a Middle Class person. I dont know why Pakwheels administration wont give attention to the blog section and are just accepting every other article written.

  4. MySchizoBuddy says

    So these incentives were started in 2013 and the article is appearing in end of 2015?

  5. MySchizoBuddy says

    not to mention Honda Fit hybrid. Btw i don’t know any middle class person that can afford 20-23,00,000PKR Prius

  6. M.Saeed says

    When consulted some local dealers last week about the present duty incentives for Hybrid cars, they said that, in fact Government has added a 10% surcharge on import of all used Hybrid cars. That has on average, increased the prices of Hybrid cars imported in 2015 onward by almost Rs.100,000 on top of their 2014 prices.

  7. Irtaza Sohail says

    Does anyone have statistical data on the import of hybrid cars?

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