The Senate Standing Committee on Industries and Production was informed on Monday that the government was considering imposing taxes on imported electric vehicles (EVs) to curb the transport sector’s $9-billion import bill.
Chaired by Senator khalida Ateeb, the meeting was attended by Senators Danesh Kumar, Syed Masroor Ahsan, and officials from the Ministry of Industries and Production and the Federal Board of Revenue (FBR).
“Officials informed that the efforts are being made to impose taxes on imported electric vehicles. Taxes on locally manufactured electric vehicles will be minimal or zero. Additional duties have been imposed on the import of EV parts that are being manufactured locally,” the Senate Secretariat said in a statement.
Also read: Hybrid Electric Vehicles in Pakistan: ‘Industry must think seriously about affordability’
Meanwhile, Ministry of Industries and Production advised the provincial governments not to charge registration fees on EV vehicles, provide same type of number plates across the country, and charge lesser tool from EV vehicles.
The Senate committee was given briefing by officials regarding the current policy for establishing manufacturing units of EVs automobiles indicating motorcycles/bikes in the country.
According to the officials, 17 licenses for three-wheelers and 77 licenses for two-wheelers have so far been issued in the country.
Pakistan government’s target is to shift 30% of vehicles to EVs by 2030.
A total of 2.2 million vehicles would be distributed among the public through government subsidies by 2030, the official told.
“There are 20 million vehicles and more than 20 million motorcycles in the country. This year, 116,000 motorcycles and 3,170 rickshaws will be provided to the public. Over five years, Rs120 billion will be generated through the carbon levy and this amount will be utilised to provide subsidies on electric vehicles,” the Senate panel was informed.
The officials briefed that the work was underway on a one-window operation in coordination with the Board of Investment. “Licenses of manufacturers who are not exporting have been cancelled,” the Senate panel was told.
New Energy Vehicles (NEV) Policy 2025-30
The New Energy Vehicles (NEV) Policy 2025-30 aims at reduction of vehicular emissions, improvement of air quality, enhancing the productive use of excess electricity generation capacity in the system, and lowering oil import.
It also seeks to lay the foundations for development of a competitive local NEV industry, transfer of technology and creating green jobs, with intentions to foster synergies among the federal and provincial governments.
Read more: Pakistan launches National Electric Vehicle Policy 2025-30
The policy envisions converting 30% of new sales of bikes, rikshaws, passenger cars, light commercial vehicles, buses and trucks to new energy vehicles by 2030.
Beyond the policy period, the country has ambitions in reaching NEV sales to 50% by 2040 and aiming for a net-zero transport fleet by 2060.
The policy also highlights that a major barrier to NEV adoption in Pakistan is high upfront cost. This necessitates measures to reduce prices closer to those of internal combustion engine (ICE) vehicles in line with regional and global practices.
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