ISLAMABAD: The government has reduced sales tax from 25 to 18 percent on locally manufactured hybrid electric vehicles with engine capacity upto 2000cc.
The reduced rate of sales tax would be applicable from September 13, 2026.
In this regard, the Finance Division has issued a notification (S.R.O.1525 (I)/2026) on Monday.
The notification said, “S.R.O.1525 (I)/2026. – In exercise of the powers conferred by clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, read with first proviso to clause (a) of the said sub-section (2), the Federal Government is pleased to direct that the following amendments shall be made in its Notification No. S.R.O. 297(I)/2023, dated March 8, 2023, as amended vide Notification No. S.R.O. 370(I)/2024, dated 8thday of March, 2024, namely: –In the aforesaid Notification, after Table-II, the following proviso shall be added, namely: –“Provided that the provisions of Table-II shall not apply to locally manufactured hybrid electric vehicles with engine capacity upto 2000cc.”
This Notification shall come into force with immediate effect, the Finance Division added.
Copyright Business Recorder, 2026
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