Incentives for electric vehicles

Saad Ali Khan wrote for us today about Electric Vehicles

Electric Vehicle (EV) – A new start !

Air pollution in Pakistan has become a major problem especially is urban cities like Karachi, Lahore, Peshawar etc. Due to air pollution it is estimated that around 135,000 people die each year and this costs the economy a staggering $47.8 billion or
5.88% of GDP. One of the important reasons for environmental pollution is the large increase in car ownership and usage. In FY20, total petrol sales (MS) were 7.3mn tons (9.9bn/litre), with emissions ranging from 30-40% carbon dioxide. Therefore,
one of the solutions to environmental problems is to replace traditional vehicles with an electric vehicles. Recently, ECC has approved electric vehicle policy for next five years with the aim of cutting air pollution and curbing climate change. The goal is
to have at least 30% of all vehicles running on electricity by 2030 and a further 90% by 2040.

Here are the incentives for electric vehicles:

• Specific parts of 2-3 wheelers will be imported at 1% custom duty and 1% GST.

• In CKD, EV specific parts to attract 1% CD (4 wheelers).

• CBU imports may be made at CD 25%, Duty free import of plant & machinery of EVs, Import of 100 CBUs per company
@50% of the prevailing custom duties and import of EV charges to attract 1% CD.

• Import of CKD in small cars/SUVs with 50Kwh battery or below and LCVs with 150:

• Exemption of sales tax and VAT on imports and 1% sales tax on sales.

• 1% WHT under section 148 of income tax ordinance.

• GST and VAT on import stage to be exempted for such LCVs and Cars/SUVs.

• CBU import may be made at 0% VAT on imports.

• Exemption of EVs (4 wheeler) from FED.

Leave a Reply

What do you think?

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%


Automakers under trouble!