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Policy tracker

Government EV Policies

The latest federal and provincial government policies on electric and hybrid vehicles in Pakistan: taxes, duties, tariffs and incentives.

This page tracks the federal and provincial government policies that affect the price and running cost of electric and hybrid vehicles in Pakistan. Rates change with each budget, NEPRA decision and FBR notification, so every section shows where the figure comes from.

Sales tax on locally assembled EVs

Qualifying EVs manufactured in Pakistan pay a reduced sales tax of 1%, and the kits of parts imported for local assembly (CKD kits) are exempt from sales tax. The Federal Board of Revenue confirmed in September 2026 that both concessions run until 30 June 2027. After that date they have to be renewed in the next budget.

Excise duty on imported EVs (Budget 2026-27)

The 2026-27 budget ended the blanket exemption from Federal Excise Duty for EVs imported fully built (CBU). From 1 July 2026:

  • Imported EVs valued up to about US$75,000 pay no excise duty.
  • Imported EVs valued between about US$75,000 and US$110,000 pay 30%.
  • Imported EVs valued above US$110,000 pay 40%.

Customs duty and sales tax still apply at the port. Hybrids, plug-in hybrids and range-extenders are covered in the next section.

Hybrids, plug-in hybrids and range-extenders

These are taxed differently from pure EVs, and the 2026-27 budget changed the sales tax on hybrids twice:

  • Until 30 June 2026, hybrids paid a concessional sales tax, reported as 8.5%. The Finance Act 2026 did not extend it, so from 1 July 2026 hybrids moved to Table II of S.R.O. 297(I)/2023 and paid 25% sales tax, on import and on local supply.
  • On 13 September 2026, S.R.O. 1525(I)/2026 took locally manufactured hybrid electric vehicles with an engine up to 2000cc out of Table II, so they pay the standard 18% rate. The notification does not change the treatment of imported hybrids or of locally made hybrids above 2000cc.
  • Plug-in hybrids and range-extenders: reports of the rate that has applied since 1 July disagree, and we have not found a notification that settles it. We will not state a rate until we can cite one.

Punjab: motor vehicle tax

Punjab raised its discount on the annual motor vehicle tax for EVs from 95% to 99% in July 2026.

Sindh: registration fee and token tax

Sindh has fixed the registration fee for non-commercial EVs at Rs 1,000 and the annual motor vehicle tax at Rs 500 until May 2028.

Islamabad: value-based token tax

The Finance Act 2026, in force from 1 July 2026, changed Islamabad’s token tax from flat engine-capacity slabs to a percentage of the car’s invoice value for engines above 1,000cc. In the Finance Bill as reported to the National Assembly, which amends the West Pakistan Motor Vehicles Taxation Act, 1958 as it applies in the Islamabad Capital Territory, the annual rates for private cars are:

  • Up to 1,000cc: Rs 20,000
  • 1,001cc to 2,000cc: 0.25% of invoice value
  • Above 2,000cc: 0.35% of invoice value

These rates are set by engine capacity. We have not found a published rule for how a car with no engine, such as an EV, is assessed, so check with the Islamabad Excise and Taxation office before you budget.

Advance income tax at registration

When a new car is registered, the excise office collects advance income tax under section 231B of the Income Tax Ordinance, 2001, at the rates in Part IV, Division VII of the First Schedule. The rate depends on the car’s engine size or value, and people who are not on the active taxpayer list pay a higher rate than filers.

We do not print a rate table here. The rates change with each Finance Act, FBR issues a new withholding tax card for each tax year, and we could not confirm the 2026-27 schedule from a primary document. Check the current schedule on the FBR website or ask the excise office that will register your car.

Charging and solar tariffs (NEPRA)

NEPRA sets the tariff that public charging stations pay for electricity. Its May 2025 decision set the base tariff at Rs 23.57 per kWh, and operators add a margin set by the market. Under NEPRA’s 2026 net billing rules, exported rooftop solar earns only a low buyback rate, which makes charging a car directly from your own panels more attractive than selling that power back to the grid.

PAVE scheme

The government’s PAVE scheme targets electric two-wheelers, not cars. See our electric bike and scooter listings for the PAVE-approved models.

How these policies affect Voltranker scores

Price is a direct input to our Value pillar. When a tax change moves a car’s price, we recalculate its Value score, and because Value is scored against other cars in the same price tier, its competitors’ scores can move too.

This page is general information, not tax advice. Figures are correct as far as we can verify on the date this page was last updated.

Sources

Primary documents

News reports

Something wrong on this page?

Factual errors get corrected and logged publicly. Disagreements about a score go through the challenge process.