ISLAMABAD: The government has imposed a new kind of “Energy Vehicle Adoption Levy” on locally manufactured/assembled vehicles and imported vehicles to encourage people to switch to electric vehicles including motorcycles and rickshaws.
The Federal Board of Revenue (FBR) has proposed the new “Energy Vehicle Adoption Levy” through Finance Bill (2025-26).
According to the Bill, the manufacturer will pay one per centum ad valorem of invoice price inclusive of duties and taxes on all internal combustion engine motor vehicles assembled or manufactured in Pakistan with engine capacity less than thirteen hundred cubic centimetre.
FBR may impose 18% sales tax on locally-manufactured cars
Person importing internal combustion engine motor vehicle will pay one per centum ad valorem of assessed value inclusive of duties and taxes on the import of all internal combustion engine motor vehicles with engine capacity less than thirteen hundred cubic centimetres.
The manufacturer will pay two per centum ad valorem of invoice price inclusive of duties and taxes on all internal combustion engine motor vehicles assembled or manufactured in Pakistan with engine capacity from thirteen hundred cubic centimetres to eighteen hundred cubic centimetres.
The person importing internal combustion engine motor vehicle would pay two per centum ad valorem of assessed value inclusive of duties and taxes on all internal combustion engine motor vehicles imported in Pakistan with engine capacity from thirteen hundred cubic centimetres to eighteen hundred cubic centimetres.
The manufacturer will pay three per centum ad valorem of invoice price inclusive of duties and taxes on all internal combustion engine motor vehicles assembled or manufactured in Pakistan with engine capacity of more than eighteen hundred cubic centimetres.
All internal combustion engine motor vehicles imported in Pakistan with engine capacity of more than eighteen hundred cubic centimetre would be subjected to three per centum ad valorem of assessed value inclusive of duties and taxes. The levy would be applicable on person importing internal combustion engine motor vehicle.
Manufacturers will pay one per centum ad valorem of invoice price inclusive of duties and taxes on bus and truck with an internal combustion engine assembled or manufactured in Pakistan.
A bus and truck with an internal combustion engine imported in Pakistan would be subjected to one per centum ad valorem of assessed value inclusive of duties and taxes on person importing internal combustion engine vehicle motor.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.