The fiscal budget 2023-24 has finally been released, bearing great news for the hybrid car segment in Pakistan.
According to the document available with ProPakistani, the customs duty (CD) on the import of hybrid electric vehicles (HEVs) in a completely built-up (CBU) form has been reduced to 1%.
The CD for the import of completely knocked down (CKD) kits of HEVs has also been reduced. The document suggests that the CD on HEV CKD import is 4%, while the CD on the import of plugin hybrid electric vehicle (PHEV) CKDs is 3%.
This should impact the hybrid car prices in the Pakistani market, and encourage several new players to invest in the hybrid car segment in Pakistan.
It also bears mentioning that the CD on lithium-ion batteries is now 0%. Battery packs are complex and expensive components that serve as a life source for EVs. The reduction in CD for this part will also likely impact the prices of HEVs and PHEVs.
Although Pakistan doesn’t have many locally assembled hybrid car options in Pakistan, this decision will likely inspire other automakers to invest in this arena.
What was the tax on hybrid cars/SUV before?
I think it was 8%. But other players and current manufacturers will not take any actions until they make policies stay for longer times. Here we have a change every other day.
It’s not 1pct on hybrid cars. It’s for commercial vehicles only.
I think Rs 1.00mn will be reduced in Haval Hev