Overview
- The International Monetary Fund has demanded a 25 percent sales tax on imported electric vehicles, rejecting a proposed 1 percent concession that Pakistani officials had floated.
- Lawmakers on the Senate Standing Committee on Finance approved a Customs (Amendment) Bill to extend certain customs-duty concessions for EV parts and limited fully built units until June 30, 2026, with quantity caps for CBUs and two‑/three‑wheelers.
- Government negotiators have proposed targeted reliefs for domestic assemblers, including taxing some raw-material and EV-part imports at 1 percent and cutting parts duties from 10 percent to 5 percent, subject to IMF approval.
- Officials are also considering new measures to raise revenue and discourage large petrol and diesel cars, such as a carbon levy and additional levies of roughly 10–19.5 percent on vehicles above 2,000cc.
- Strong market momentum gives the debate urgency: PAMA data show vehicle sales rose about 45 percent in the first 11 months of the fiscal year, increasing pressure on policymakers to balance industrial protection with fiscal needs.