How to Claim EV Tax Incentives and Benefits in Pakistan

Claim EV Tax Incentives and Pakistan are becoming increasingly popular in Pakistan as the government offers several tax incentives, registration fee reductions, customs duty exemptions, and charging infrastructure benefits under the National Electric Vehicle Policy. These incentives are designed to promote green transportation, reduce fuel imports, control carbon emissions, and encourage investment in the local EV manufacturing ecosystem.

If you are planning to buy an electric bike, electric car, rickshaw, bus, or commercial EV in 2025, this guide will explain exactly how to claim EV tax incentives in Pakistan, who is eligible, what documents you need, and how the government supports consumers and manufacturers.

What Are EV Tax Incentives in Pakistan? – Key Keyword Overview

EV tax incentives in Pakistan are government-approved financial reliefs offered to both buyers and manufacturers of electric vehicles. These incentives reduce the overall cost of EVs, making them more affordable for the public.

Under the National Electric Vehicle Policy (NEVP) and Automotive Industry Development and Export Plan (AIDEP 2021–26), the government provides the following:

✔ Zero Sales Tax on EVs up to 50kWh battery capacity

✔ Zero Customs Duty on EV parts for local manufacturing

✔ 1% Sales Tax on all locally-made EVs

✔ Reduced Registration Fees for EVs

✔ Exemption from Federal Excise Duty (FED) for EV imports

✔ Lower Income Tax for EV manufacturers

✔ Duty-free import of charging equipment

✔ Solar EV charging incentives for commercial operators

These benefits significantly reduce the cost of owning and running an electric vehicle.

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Types of EV Tax Incentives in Pakistan – Detailed Breakdown

Pakistan offers two major categories of EV incentives:

1. Consumer-Based Incentives (For EV Buyers)

These directly reduce the cost of buying, registering, and operating EVs.

✔ 0% Sales Tax on EV Cars up to 50kWh battery

EVs such as compact cars and hatchbacks qualify for zero sales tax, reducing prices by up to Rs. 300,000 – Rs. 800,000.

✔ Reduced Customs Duty on Imported EVs

The government charges 1% duty on EV-specific parts and reduced duty on CBUs (Completely Built Units).

✔ Registration Fee Discounts

Many provinces offer 50% to 75% lower registration fees.

✔ Lifetime Token Tax Exemption

Several EV categories enjoy token tax exemption or reduced annual tax.

✔ Exemption From Federal Excise Duty

EVs are exempt from 7%–10% FED charged on petrol/hybrid cars.

✔ Incentives for EV Bikes & Rickshaws

EV motorcycles and rickshaws enjoy:

• 0% sales tax
• Lower registration fees
• Government-backed financing (coming in 2025)

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2. Manufacturer-Based Incentives (For EV Companies)

Companies investing in EV production receive:

✔ 1% Sales Tax on Locally Manufactured EVs

This is significantly lower than the regular 17%.

✔ Zero Duty on EV Charging Equipment Import

Promotes growth of charging infrastructure.

✔ Lower Income Tax Rates for EV Assemblers

Encourages industrial investment.

✔ Duty-Free Import of Lithium-Ion Batteries

To reduce production cost.

✔ Special Benefits for Local EV Production Plants

Companies establishing EV manufacturing facilities receive:

• Investment subsidies
• Land and utility concessions
• Export opportunities

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How to Claim EV Tax Incentives in Pakistan – Step-by-Step Process

This section explains exactly how consumers and manufacturers can claim EV tax benefits in 2025.

Step 1: Determine Your Eligibility

Eligibility depends on vehicle type and policy category.

You qualify if you are buying:

• EV car up to 50kWh battery
• EV motorcycle
• EV rickshaw
• EV bus or van
• EV pickup or commercial vehicle

You qualify if you are an EV manufacturer:

• Registered with the Engineering Development Board (EDB)
• Approved under AIDEP 2021–26
• Producing EVs locally

Step 2: Choose a Vehicle That Falls Under the EV Incentive List

Before purchase, confirm whether your vehicle qualifies for incentives.

EV categories included:

• Fully electric cars
• Electric buses & vans
• Electric three-wheelers
• Electric bikes
• Electric loaders & scooters
• Electric commercial trucks

Not included:

• Hybrid vehicles (HEV)
• Plug-in hybrid vehicles (PHEV)

Only 100% battery-electric vehicles (BEVs) qualify.

Step 3: Ask Your Dealer to Apply Reduced Taxes at Purchase

Most incentives are automatically applied at the dealership level.

Dealer Must Apply:

✔ Zero sales tax
✔ Reduced customs duty (if imported)
✔ Zero FED
✔ Lower showroom tax

Ask the dealer for:

• Tax invoice showing applied incentives
• Proof of EV status (battery details)
• Compliance certificate

Step 4: Apply for EV Registration Discounts

When registering your EV with Excise & Taxation Office, submit:

Required Documents:

• CNIC
• Purchase invoice
• Battery capacity certificate
• Sales tax exemption proof
• EV compliance certificate
• Registration file

Benefits You Receive at Registration:

✔ Reduced registration fee
✔ Lower token tax
✔ Lifetime token fee exemption (in many regions)

Provincial excise offices already have EV policy codes, so the process is hassle-free.

Step 5: Claim Charging Station Incentives

If you plan to install an EV charging station, you can claim:

✔ Zero duty on imported chargers

✔ Reduced income tax rates

✔ Solar charging incentives

✔ Lower electricity tariff (time-of-use)

For commercial operators:

1. Register your business with SECP.
2. Obtain NOC from concerned authority.
3. Apply for duty-free import of chargers through FBR.

Step 6: Claim Tax Returns (For Businesses & Manufacturers)

Companies manufacturing EVs can apply for:

• Sales tax refunds
• Duty drawback
• Income tax concession

Submit the following to FBR:

• NTN
• Manufacturing license
• Parts import details
• EDB certificate
• Claim forms

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EV Tax Benefits for Consumer – Why It Matters in 2025

EV users save significant money compared to petrol/diesel vehicles.

✔ 70% Fuel Savings

Charging an EV costs far less than petrol.

✔ Lower Maintenance

EVs have fewer moving parts.

✔ No Oil Changes

Reduces annual maintenance costs.

✔ 0% Sales Tax on Many Models

Huge upfront savings while buying.

✔ Priority in Green Financing

Banks will offer EV loans under green financing in 2025.

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EV Tax Benefits for Manufacturers – Economic Impact

Manufacturers receive:

• Reduced costs
• Higher profit margins
• Export opportunities
• Government collaboration
• Local job creation

Pakistan aims to produce:

• 500,000 electric bikes
• 100,000 electric rickshaws
• 1,000 electric buses
• 50,000 electric cars

by the year 2030.

EV Charging Infrastructure Benefits – 2025 Policy Update

The government is rapidly expanding charging stations.

Operators receive:

• Duty-free DC fast chargers
• Lower energy tariffs
• Solar-based EV charging facility approvals
• Net-metering benefits

Several cities already have charging hubs:

• Lahore
• Islamabad
• Karachi
• Faisalabad
• Peshawar
• Quetta

Required Documents to Claim EV Incentives in Pakistan

For Buyers

• CNIC
• Purchase invoice
• EV certificate (battery size)
• Customs clearance document (if imported)
• Registration form
• Address proof

For Charging Station Owners

• SECP registration
• Business NTN
• Equipment import invoice
• NOC from authorities

For Manufacturers

• EDB approval
• Customs import data
• Tax return documents
• Manufacturing license

Latest EV Models Eligible for Tax Incentives in Pakistan (2025)

Some popular EVs qualifying for incentives:

EV Cars

• MG ZS EV
• Hyundai Ioniq
• Audi e-Tron (partial incentives)
• JAC Electric
• Seres 3
• DFSK Electric
• Pak-Suzuki upcoming EV hatchback

EV Bikes

• Jolta Electric
• Road Prince Electric
• Metro Electric Scooter
• Yadea EV

Rickshaws

• Sazgar Electric
• Crown Electric Rickshaw

Buses

• Foton EV Bus
• BYD Bus

Frequently Asked Questions (FAQs)