Customs Authorities Confused on How to Tax Fully Electric Cars

Customs authorities are seeking guidance of Federal Board of Revenue (FBR) about giving concessions on duties and taxes for the import of environment-friendly ‘electric vehicles’ (EV), as applicable in case of ‘hybrid electric vehicle’ under SRO 499(1)/2013, dated 12/6/2013.

Sources revealed that FBR is examining the issue in light of practice in field formations and is expected to issue a clarification after completion of the exercise.

The Board has raised a question on whether a complete electric vehicle is entitled for benefit/concession of duties and taxes available to electric hybrid vehicles in terms of SRO 499(I)/2013.

According to a communication from Jamil Nasir Khan (Collector Model Customs Collectorate (Appraisement) Dry port Lahore) to the FBR, facts of the case in brief are that one Mian Ahmad Irfan s/o Muhammad Noorullah imported an ‘electric vehicle’ (EV) of model 2016 bearing chassis # 5YJSB7E21GF137160 under gift scheme and filed GD # 792 dated 24.10.2017 through Sanasu Traders, Customs Clearing Agent.

As per examination report, the imported vehicle is a “used Tesla fully Electric Car S70 Fuel Electrically 193 kw, Model 2016, Duel Motor, 04 Wheel Drive” with standard accessories.

At the time of assessment, the importer contended that the vehicle is entitled to benefit/concession of duty and taxes available to the “hybrid electric vehicle” on the analogy that both types of vehicles are environment-friendly and that the electric vehicle imported by him is far better, from the perspective of environment, compared to fossil fuel vehicles and hybrid electric vehicles.

It generates no pollution and noise. The importer further contended that the vehicle squarely falls under ‘hybrid electric vehicle’ (HEV) in terms of SRO 499(1)/2013 dated 12/6/2013, according to the Collector’s letter.

Since no evidential record/data of such vehicles is available, the importer’s request for a provisional assessment was acceded to.

The said vehicle was assessed under PCT 7803.8090, attracting customs duty 50%, sales tax 17%, withholding tax 9%, and additional customs duty 1%. He further contended that since no cubic capacity of the vehicle is available, therefore federal excise duty @ 10% is also not attracted in this case.

Out of the total amount of duties and taxes of Rs 6,616,113, the differential amount of duty and taxes including FED (Rs. 3,867,811), has been secured in the shape of a pay order. Against this backdrop, the Board’s guidance is solicited on the following specific question,

Is a complete electric vehicle covered under ‘hybrid electric vehicle’ in terms of SRO 499(I)/2013 dated 12/6/2013 and entitled for benefit/concession of duly and taxes available to electric hybrid vehicles?


  • RealPatriot

    EVs should be completely tax free to give boast and incentive to the people promoting/importing pollution less and noise less full electric vehicles.

    • Waqas Tariq

      Agreed. EVs should be 100% tax free.

      • Not Possible in Pakistan Specially PPP, PLM(N) & PTI Party:)

    • hatib has returned

      agree

  • MySchizoBuddy

    EVs will further increase the load on our failing power network. People buying Evs should also buy a charging station that uses solar power.

  • Kamran

    EV should be tax equally to that of luxury cars i.e., 250% or whatever is the current figure. The reason is that EV is a very bad choice for countries like Pakistan, which is already challenging huge energy crisis. Imagine, when EV will spread in our country as KIA is already joining Pakistan, they will deliver less expensive cars as a result it will promote nothing rather ‘kunda system’.

    • Then ban air conditioners first

      • Kamran

        we can’t live without air-conditioners.

        • Danish

          Thanks for precious information…
          i thought Oxygen was more important.

          • After OxyGen Wife is More Important than AC :)

        • redfire

          you cannot but i can and many others are living without A/C,
          i will prefer ban on A/C than cheap pollution free EV cars.

          • Kamran

            If you can’t afford AC then how can you afford EV. My very-statement was for the peoples like ‘US’. But, you did’t bother to understand it.

    • Wali Khan

      As most of the EV and HEV are luxury cars, so they must be taxed separately (Standard EV/HEV and luxury EV/HEV).

    • Waqas Ahmed

      WHATTAY IDOTIC STATEMENT

      • Kamran

        majority can’t afford these cars here in Pakistan. hats off to your sick mentality.

    • continuedhere

      Yes this is the right approach. In Pakistan all new technologies are banned by default. Ban websites, tax internet access and EVs. This is the path to progress!

      • Kamran

        ban p0n websites, tax internet with higher bandwidth, tax EV; because it can’t be purchased by middle class person of our country

  • Saad Khan

    WHAT A SHAME MAN, KW can be converted to Hp and then to cc…. WHAT A COUNTRY

    • Ye Appriaser Customer Officer Ne CSS Clear Nahi Kiya hai Isi Liye Aisa HOWA :)

  • FBR Ne Itne SRO De Diya Hai k PRAL Walo Ko Samajh He Nahi Raha WeBOC Pe Kis Tarha Implement Kare :

  • Ali

    A complete all electric car falls under 1 CC category so the implementation should be for 1cc only.
    If tax stays same then still consumers have no issue with that.
    So according to the law there should be only 1000 rupees charges on 1 cc or max 2000 rupees. :D

    However, i am sure those haramkhors in custom will bring up something unexpected.
    So a 100,000 dollar tesla model s P100D should cost us 125.000 dollar including shipment to Pakistan and with every single charges. Not more than that.

  • Owaiis

    Our environment is getting polluted fast. We need EV in this country.

  • Anwaar ul haq

    In England Electric Cars are subsidized. If you buy a car for 40k Govt will pay you 5k

  • jawan amir khan

    what a country of fools…. Basic Technical Education should be compulsory we are living in world of technology.. should not even use cc as criterion simply use Horse Power HP.. 1 hp = 746 Watt a grade 10 student knows that.. why use cc at the end of day it all matter how much brake horse power an engine delivers? country of fools.. taxed everything.. the next thing they would tax is you piss and you are taxed .. you spit you are taxed…Such a shame..