Rs10bn more revenue: Govt notifies new EV levy on vehicles

ISLAMABAD: The government has notified imposition of the Energy Vehicle Adoption Levy on locally manufactured and imported vehicles.

The government is expected to generate Rs10 billion through this new levy, which will be utilised to promote electric vehicles (EVs) in the country.

According to the notification, issued by the FBR on the First Schedule to the Finance Act, 2025, the FBR imposed new Energy Vehicle Adoption Levy under which all internal combustion engine motor vehicles assembled or manufactured in Pakistan with engine capacity less than 1300 cubic centimetres, the manufacturer will pay one per cent ad valorem of invoice price inclusive of duties and taxes.

For all internal combustion engine motor vehicles imported in Pakistan with engine capacity less than 1300 cubic centimetres, person importing internal combustion engine motor vehicle will pay one per cent ad valorem of assessed value inclusive of duties and taxes.

For all internal combustion engine motor vehicles assembled or manufactured in Pakistan with engine capacity from 1300 cubic centimetres to 1800 cubic centimetres, the manufacturer will pay two per cent ad valorem of invoice price inclusive of duties and taxes.

On all internal combustion engine motor vehicles imported in Pakistan with engine capacity from 1300 cubic centimetres to 1800 cubic centimetres, the person importing internal combustion engine motor vehicle will pay two per cent ad valorem of assessed value inclusive of duties and taxes.

All internal combustion engine motor vehicles assembled or manufactured in Pakistan with engine capacity of more than 1800 cubic centimetres, the manufacturer will pay three per cent ad valorem of invoice price inclusive of duties and taxes. All internal combustion engine motor vehicles imported in Pakistan with engine capacity of more than 1800 cubic centimetres, the person importing internal combustion engine motor vehicle will pay three per cent ad valorem of assessed value inclusive of duties and taxes. A bus and truck with an internal combustion engine assembled or manufactured in Pakistan, the manufacturer will pay one per cent ad valorem of invoice price inclusive of duties and taxes. A bus and truck with an internal combustion engine imported in Pakistan, the person importing internal combustion engine motor vehicle will pay one per cent ad valorem of assessed value inclusive of duties and taxes.