The government is reportedly considering imposing up to 25% sales tax on imported electric vehicles (EVs) as part of the upcoming Budget 2026-27. The proposed measure is aimed at increasing revenue collection and restructuring tax incentives within Pakistan’s growing automotive sector.
If approved, the new tax could significantly impact the prices of imported EVs, potentially affecting consumer demand and the pace of electric vehicle adoption in the country. Industry stakeholders are closely monitoring the budget proposals, as any changes could influence investment decisions, market competition, and the broader transition toward cleaner transportation.
Officials are expected to finalize the proposal after reviewing its potential impact on revenue generation, environmental goals, and the local automotive industry.
