Local manufacturers of EV bikes in Pakistan have raised concerns over the recent sales tax hike from 1% to 18%, warning that the move could slow down the growth of the electric mobility sector.
During a meeting with the Special Assistant to the Prime Minister on Industries and Production, industry representatives stated that the increased tax will push prices up, limit consumer affordability, and ultimately reduce EV adoption.
The manufacturers stressed that the government’s environmental and fuel-saving targets will be difficult to meet if electric bikes become more expensive for the public. They highlighted that promoting local production and supporting vendors will reduce dependency on imported parts and create new job opportunities across the country.
In response, the SAPM assured the industry that the government aims to support local EV manufacturers by reviewing challenges and offering targeted incentives. The official emphasized that boosting local manufacturing capacity remains key to strengthening Pakistan’s economy while promoting cleaner and affordable mobility alternatives.
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Industry stakeholders also urged the Engineering Development Board (EDB) to work closely with EV vendors to identify practical solutions that can ensure stable growth of the EV sector.
