EV Tax Debate Intensifies as Lawmakers Seek Clarity on Government Policy
NA committee questions EV taxation policy as lawmakers raise concerns over charging infrastructure and Pakistan's readiness for electric vehicles.
Questions over Pakistan’s electric vehicle (EV) policy surfaced during a meeting of the National Assembly Standing Committee on Finance and Revenue, with lawmakers expressing concerns about proposed taxation measures and the lack of supporting infrastructure for EV adoption.
The issue came under discussion during the committee’s clause-by-clause review of the Finance Bill 2026, where members examined the government’s broader automobile policy set to replace the current framework expiring on June 30.
Officials from the Federal Board of Revenue (FBR) informed the committee that electric vehicles priced up to $75,000, approximately Rs 20 million, would remain exempt from federal excise duty (FED). However, EVs exceeding this threshold would be subject to taxation under the proposed framework.
The proposal drew criticism from several lawmakers, who questioned the rationale behind creating separate tax categories within the EV segment.
MNA Sharmila Faruqui called for greater policy consistency, arguing that the government should clearly define its approach towards electric mobility. She said policymakers must either actively encourage EV adoption or avoid treating certain electric vehicles as luxury products by imposing additional taxes.
Concerns were also raised regarding the country’s preparedness for large-scale EV adoption. MNA Shahida Akhtar Ali pointed to the limited availability of charging infrastructure and questioned how the transition to electric mobility could succeed amid existing energy challenges.
The discussion took place alongside deliberations on a proposed five-year automobile policy aimed at rationalizing duties across various vehicle categories. Government officials maintained that the broader reforms were intended to lower import tariffs and reduce the cost of doing business.
The committee’s debate highlights growing scrutiny of Pakistan’s EV strategy as policymakers attempt to balance revenue generation, environmental goals, and consumer affordability. With electric mobility increasingly becoming a key component of global transport policies, lawmakers stressed the need for a coherent framework that supports adoption while addressing practical challenges on the ground.
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