The addition of the electric vehicle policy of Pakistan is a key development of the Pakistan automotive industry. The government has been reduced custom duty on electric vehicles part by 1 percent and announced some changes in customs tariffs in the FY budget 2020-21.
The Federal Board of Revenue (FBR) has added electric vehicle policy to the customs tariff and this is a significant development for the Pakistan Electric Vehicle Policy. Authorities have created 11 tariff lines for electric vehicles stated by the FBR officials.
Electric vehicle policy is a considerable part of our future automotive technology. Pakistan is already far behind the advance technology. The reduction in customs duty would be helpful for the automakers to import EV parts because we have not enough resources to produce electric vehicle parts in the country.
As per the statement government will charge 15 percent customs duty on the import of non-localized parts and 15 percent-plus custom duty will charge on localized parts.
The 1 percent reduction on the import of electric vehicle parts will helpful for the automakers to established electric vehicles in Pakistan according to the international standards. The addition of EVs policy in customs tariff would help full to promote the production of EVs in Pakistan.
Budget 2020-21 Statement for Electric Vehicles:
According to the budget statement, the reduction in customs duty for electric vehicle parts would be applicable for the next 5 years and started from 1st July 2020. Moreover, three-wheeler and two-wheeler electric vehicles can be imported at 50% of current customs duty tariff and other commercial EVs can be imported at 1% duty.
