Govt Rejects 18% IMF Tax on EVs

While planning phased cuts in customs duty on eligible imported electric cars, ProPakistani has learnt, the federal administration has rejected an International Monetary Fund (IMF) proposal to impose 18 percent sales tax on electric vehicles under the new Auto Policy 2026-31.

Key points

• Prime Minister Shehbaz Sharif approved the draft Auto Policy 2026-31 on Tuesday.
• Sources adde that the customs duty reductions would be implemented in phases during the policy period.
• Obtain the latest business news, market insights, and economic updates wherever you prefer.

Under the proposed policy, customs duty on eligible electric vehicles priced up to $75, 000 will be reduced from 50 percent to 25 percent initially, with a further cut to 15 percent planned by fiscal year 2030-31. Govt to Impose New 10% Car Levy.

For context, the draft policy additionally eyes a sales tax of 6 percent on range-extended electric vehicles and 9 percent on plug-in hybrid vehicles and other variable tax categories of alternative-energy vehicles.

Prime Minister Shehbaz Sharif approved the draft Auto Policy 2026-31 on Tuesday. The six-year framework intends to encourage electric mobility through changes in vehicle taxation, including lower import duties on eligible electric cars.

Sources adde that the customs duty reductions would be implemented in phases during the policy period. Stay Connected with ProPakistani.

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Taken together, the developments around govt Rejects 18% IMF Tax on EVs point to a situation that is still moving, and the coming days should bring more clarity.