ISLAMABAD: The Federal Board of Revenue (FBR) has extended sales tax exemption on import of CKD kits for specified electric vehicles till June 30, 2027.
In this regard, the FBR has issued budget instructions (2026-27) to the field formations on Friday.
According to the FBR, the S. No. 157 of Table-1 of the Sixth Schedule to the STA provided exemption on import of CKD kits for specified electric vehicles till June 30, 2026. The said time line of exemption has been enhanced for further one year i.e. till June 30, 2027.
Currently, specified EVs are chargeable to 1% reduced rate in sales tax. For policy continuity the reduced sales tax regime for specified electric vehicles is extended till 30thJune 2027. Moreover, reduced rate to electric trucks in CBU condition, along with electric buses, has also been provided. The measure is aimed at supporting clean mobility.
The FBR further stated that the S. No. 55 and 5511 of Table-1 of the First Schedule to the Federal Excise Act, 2005 provide for imposition of the federal excise duty FED on imported and locally manufactured vehicles. However, electric vehicles were excluded till 30.06.2026. The said time line of exemption/ exclusion has been extended for one year i.e. up to 30.06.2027.
Currently, luxury vehicles are chargeable to FED upto 40 percent rate. But electric vehicles including electric cars and SUVs and other electric vehicles have been excluded from the chargeability of FED. Now, FED on luxury electric vehicles has been imposed at 30 percent on EVs with value exceeding USD 75,000 and up to USD 110,000; and 40 percent on EVs with value exceeding USD 110,000, the FBR added.
Copyright Business Recorder, 2026
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