From DAWN...
The ECC was requested that individuals interested in electrical vehicles (EVs) in two and three-wheeler category and HCVs should be facilitated through policy intervention which could not be covered in the EV Policy (2-3 wheelers and HCVs) approved by ECC on June 10, 2020. Therefore, the waiver of additional custom duty (ACD) and value-added tax (VAT) on imports for EV (2-3 wheelers and HCVs), in CBU condition was proposed till June 30, 2025.
However, the policy (four wheelers) took time to be finalised due to its inherent complexities and long consultative process with existing original equipment manufacturers (OEMs).
Therefore, such facilitation need to be extended in Pakistan for which an inter-ministerial committee constituted by the federal cabinet had now finalised the EV policy (four wheelers). The proposed fiscal incentives shall remain in force till June 30, 2026.
Under the policy, EV specific parts in completely knocked down (CKD) would attract only 1pc custom duty and no ACD or regulatory duty (RD) or value added tax, while completely built units (CBUs) import would be made at 25pc custom duty and zero ACD or RD. On top, the 4-wheelers EV also envisage duty free import of plant and machinery, import of 100 CBUs per company at the rate of 50pc of prevailing custom duties while import of EV charges would attract 1pc custom duty only.
Also, the import of CKD in small cars and sports utility vehicles with 50 kWh battery or below and light commercial vehicles with 150 kWh battery would be exempt from sales tax, value added tax on imports but pay 1pc sales tax on sales. The EVs would be exempt from federal excise duty.
In addition, toll tax of National Highway Authority would be half for EV and a special window would be created at the SBP for car financing at reduced rate. The provincial governments would be requested to exempt EV from registration fee and annual renewal
