KARACHI: The New Energy Vehicle (NEV) levy on all internal combustion engine motor vehicles and motorcycles has come into effect from July 1, 2025, increasing prices significantly.
According to the details, the NEV levy covers all vehicle categories from basic motorcycles to luxury SUVs.
Atlas Honda has released new prices after NEV implementation. The CD70 now costs Rs 159,900 compared to its previous price, with the NEV levy adding Rs 1,500. Higher-end models like the CB150F face levies of up to Rs 4,720. All major car manufacturers have also adjusted their pricing, which are going to be revealed in a day or two.
FBR imposes new levy on locally-made, imported vehicles
The policy exempts new energy vehicles (electric and hybrid cars), vehicles manufactured exclusively for export, diplomatic mission vehicles, and those belonging to international organizations with diplomatic privileges.
“This levy is designed to encourage the adoption of cleaner transportation alternatives while generating revenue for the federal government,” said a senior government official, speaking on condition of anonymity. However, consumers are now expected to face difficult choices between conventional vehicles and exploring electric and hybrid alternatives, he added.
Copyright Business Recorder, 2025
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