The Federal Board of Revenue (FBR) has announced the imposition of a new levy called the “Energy Vehicle Adoption Levy” aimed at reducing the use of petrol and diesel vehicles in Pakistan. This initiative is part of the government’s broader efforts to promote electric vehicles and lessen the country’s reliance on fossil fuels.
According to the FBR notification, the levy will be applicable to both locally manufactured and imported vehicles, depending on their engine capacity. A 1% levy will apply to vehicles with engine capacities up to 1300cc, including pickups, buses, and trucks. For vehicles with engine capacities between 1300cc and 1800cc, the levy will increase to 2%. Vehicles above 1800cc, whether locally assembled or imported, will face a 3% levy.
The FBR has outlined that for vehicles manufactured or assembled within Pakistan, the responsibility for paying the levy falls on the manufacturer. On the other hand, for imported vehicles, the importer or the concerned individual will be liable to pay the levy.
This decision aligns with the government’s policy to promote the adoption of electric vehicles (EVs) as part of Pakistan’s commitment to reducing carbon emissions and enhancing environmental sustainability. The Energy Vehicle Adoption Levy is designed to make petrol and diesel vehicles less financially attractive, encouraging more people to transition to electric alternatives.
The new levy is expected to have a significant impact on the automobile market in Pakistan, particularly as the country moves toward cleaner, greener transportation options. The FBR’s move highlights the government’s commitment to advancing environmental policies and supporting the growth of the electric vehicle sector in Pakistan.
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