Cabinet approves Electric Vehicle Policy, huge tax exemptions announced

ISLAMABAD: The federal cabinet on Tuesday approved Pakistan’s first Electric Vehicle (EV) Policy according to the Minister for Industries and Production Hammad Azhar.

The federal minister later took to Twitter informing of massive tax exemptions not only for import and manufacturing of electric vehicles but also its infrastructure in Pakistan.

According to the federal minister, the key points of Pakistan’s first Electric Vehicle (EV) Policy are as follows:

Removal of additional customs duty and AST on imports of electric vehicle (EV) cars.
Only 1% tax on import of EV parts for manufacturers.
Registration and annual renewal fee waiver for electric vehicles (EVs) in Islamabad.
1 percent sales tax for local made electric vehicles (EVs) up to 50kwh and commercial vehicles up to 150kwh.
Duty on import of charging equipment capped at 1 percent.
FED already does not apply to electric vehicles (EVs).
Duty free import of plant and machinery for manufacturing electric vehicles (EVs).

– 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

It is pertinent to mention that the Economic Coordination Committee (ECC) of the cabinet approved the Electric Vehicle (EV) Policy for two and three-wheelers last week during a meeting presided over by the Minister for Finance and Revenue Dr Abdul Hafeez Sheikh in Islamabad.

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