ISLAMABAD: Local electric vehicle and bike manufacturers, on Tuesday, expressed serious concerns over the recent increase in the sales tax on EV bikes from 1 percent to 18 percent, urging the government to review the decision.
During a meeting with the Special Assistant to the Prime Minister (SAPM) on Industries and Production, the local industry representatives raised their concerns over the recent increase in sales tax and said that it will simply increase the rates which will reduce the sales of the EV bikes as a result the government and the industry will fail to achieve the set targets, especially improving environmental hazards.
Responding to the industry representatives, Khan assured the participants that the government remains fully committed to resolving all issues faced by vendors and manufacturers, and incentives will be provided to support the sector’s expansion.
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The industry was represented by the Pak Star Automobiles and Electric Vehicle (EV) bike manufacturers. The meeting discussedthe scheme, local production targets, and policy issues concerning the EV industry in Pakistan.
Haroon Akhtar Khan emphasized that local manufacturing of EV bike components will greatly benefit both the national economy and consumers. He noted that under the second phase of the first year’s plan, a mandatory local manufacturing ratio has been set to promote indigenous production capabilities.
The SAPM reiterated that the government of Pakistan’s vision is centered on facilitating local industrialists through targeted incentives, enabling sustainable growth in the country’s manufacturing sector.
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Highlighting the environmental and economic benefits of transitioning to electric mobility, Haroon Khan stated that the shift toward EV bikes will significantly reduce environmental pollution and help lower the import bill on petroleum products. Furthermore, local production of EV components will generate new employment opportunities and contribute to industrial growth.
The SAPM underscored that the EV Policy is designed not only to promote industrial development but also to ensure environmental sustainability. He directed the Engineering Development Board (EDB) to consult with EV bike manufacturers and vendors to identify challenges and propose effective solutions for the industry’s progress.
Copyright Business Recorder, 2025
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