Islamabad, Nov 12: Govt Offers Tax Breaks and Lower Import Duties for New Energy Vehicles in 2024
The government has initiated consultations for the New Energy Vehicle (NEV) Policy 2025-30, designed to transform the transportation sector and reduce carbon emissions.
On Monday, the Ministry of Industries brought together automakers to discuss the policy’s focus on promoting local NEV production, decreasing reliance on fossil fuel imports, and lowering carbon emissions.
The meeting explored incentives to boost NEV production, such as tax exemptions, reduced import duties on components, and green financing options for businesses investing in eco-friendly technologies.
However, automakers raised concerns that these incentives would mainly benefit the top 10-20% of consumers due to the higher cost of NEVs compared to traditional and hybrid vehicles.
Developed by the Engineering Development Board (EDB), the policy outlines a framework to promote low-emission vehicles and green technologies.
The goal is to achieve a zero-emission road fleet by 2060, as Pakistan’s transportation sector is responsible for nearly 30% of the country’s greenhouse gas emissions.
To facilitate NEV adoption, the policy proposes establishing charging stations across the country.
while private companies installing stations will receive tax breaks, discounted electricity rates, and reduced land lease costs for a decade.
The policy also focuses on environmental protection by introducing safety and recycling standards for NEV batteries. Financial incentives will support battery recycling, and recycling centers will be set up nationwide.
For the manufacturing sector, the policy proposes reducing customs duties on NEV parts and full imports until 2027, along with sales tax exemptions on locally produced components.
Heavy commercial vehicles will also receive customs duty reductions until local production increases.
