Budget 2024-25: Govt Ends Tax Exemption for Luxury Electric Cars

The government has put forward a new plan to end tax breaks for electric cars that cost more than $50,000 in the latest Federal Budget 2024-25. This means that high-priced electric cars will now be taxed like regular cars.

Until now, imported electric cars have had special tax benefits to encourage more people in Pakistan to buy them. But under this new proposal, luxury electric cars will lose those benefits. Less expensive electric cars like the MG ZS EV and Rinco Aria, which cost less than $50,000, will still keep their tax breaks.

Most electric cars are already more expensive than regular cars, so this change may not make a big difference in their sales. However, it could make high-end electric cars more costly for buyers.

The government is also thinking about increasing the tax on regular, non-electric cars. This might make cars more expensive for many people, especially with the high cost of living right now.