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Govt Ends Tax Exemption For Expensive Electric Vehicles in Budget 2025

In a new proposal, the government has suggested withdrawing tax exemptions enjoyed by electric cars valued above $50,000, according to the official budget announcement.

Originally, imported electric cars enjoyed tax benefits, to encourage their import and adoption in Pakistan. That is set to end soon as EVs valued above $50,000 will now be taxed just like regular cars. This will affect the upper echelon of electric cars such as the Audi e-Tron/e-Tron GT, BMW i8, etc. However, less expensive electric cars like the MG ZS EV, MG4 EV, Rinco Aria, etc. will not be affected by this proposal as they’re valued below $50,000

However, most electric cars are much more expensive than regular cars in the first place so it won’t have a major impact on their popularity and sales.

The government has also proposed an increase in withholding tax charged on non-electric cars. Overall, this will make cars more expensive for the masses who are already struggling with record levels of inflation.

Keep in mind that these are simply proposals and haven’t been approved yet. They are subject to change or cancellation so take it with a grain of salt.

For live updates on everything about the Federal Budget, visit this link.

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