The government has removed tax exemptions on imported hybrid cars, according to the official budget 2024-25 announcement.
These cars will now be taxed at the standard rate, the same as regular cars, depending on their engine capacity and selling price. This will undoubtedly increase prices for hybrid cars in Pakistan significantly, making them a tougher sell.
According to the official budget documents released by the government, this was done due to the local production of hybrid cars. As hybrid cars are now being locally produced and the price difference between regular cars and hybrid cars has diminished, there is no need to grant imported hybrid cars a tax exemption, according to the official documents.
Keep in mind that withholding tax on regular cars has also increased across the board, which will further increase the price of imported hybrid cars. This withholding tax change applies to cars of all engine sizes, from below 800 cc to above 2000 cc.
In addition, tax exemption on electric vehicles (EVs) has also been removed. However, this only applies to EVs that cost more than $50,000.
For live updates on everything about the Federal Budget, visit this link.
