ISLAMABAD: In a major development, the federal cabinet today (Tuesday) has approved Pakistan’s first Electric Vehicle (EV) Policy.
According to details, the cabinet meeting was held under Prime Minister Imran Khan’s supervision, which reviewed Pakistan’s overall political and economic strategy along with other developmental affairs.
The cabinet also gave a go-ahead to the Mobile Manufacturing Policy and the other decisions of the Economic Coordination Committee (ECC). The decisions of the Economic Coordination Committee (ECC) taken on December 16 were also green-lightened by the committee.
Federal Minister for Production and Industry, Hammad Azhar tweeted the following salient points of the EV policy for cars:
1) 1 percent sales tax for locally made EVs up to 50 kwh and light commercial vehicles up to 150 kwh.
2) Duty on the import of charging equipment capped at 1 percent.
3) Federal Excise Duty (FED) does not apply to EVs.
4) Duty-free import of plant and machinery for the manufacture of EVs.
5) Removal of Additional Customs duty and Accounting Services and Tax (AST) on imports of EV cars.
6) For Manufacturers: only 1% tax on import of EV parts.
7) Registration & annual renewal fee waiver for EVs in Islamabad.
– 1% sales tax for local made EVs up to 50kwh and light commercial vehicles up to 150 kwh.
– Duty on import of charging equipment capped at 1%.
– FED already does not apply to EVs.
– Duty free import of plant and machinary for manufacturing of EVs.
— Hammad Azhar (@Hammad_Azhar) December 22, 2020
The EV policy for two-wheel and three-wheel EVs was approved last week during a meeting of the ECC in Islamabad that was chaired by the Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh,
