The federal government plans to impose another levy on petrol and diesel vehicles in the upcoming budget to establish a dedicated Electric Vehicle (EV) fund and raise Rs. 122 billion over five years to support Pakistan’s transition towards petroleum-free transport.
Sources told ProPakistani that the levy has been proposed as a form of Federal Excise Duty (FED), which will be applicable to all imported and locally assembled petrol and diesel vehicles. The annual collection is estimated at Rs. 24 billion, with the entire five-year plan expected to generate Rs. 122 billion.
| Feebate on Internal Combustion Engine (ICE) Vehicles | FY26 | FY27 | FY28 | FY29 | FY30 | Total |
| Two and 3 Wheelers @ 1% | 3% | 3% | 2.9% | 2.8% | 2.8% | 14.5% |
| 4-wheelers (below 1300cc) @ 1% | 3.2% | 3.2% | 3.2% | 3.2% | 3.2% | 16% |
| 4-wheelers (1300cc-1800cc) @ 2% | 3.8% | 3.8% | 3.8% | 3.8% | 3.7% | 18.9% |
| 4-wheelers (Above 1800cc) @ 3% | 11.4% | 11.3% | 11.3% | 11.2% | 11.1% | 56.2% |
| Buses and Trucks @ 1% | 3.3% | 3.3% | 3.3% | 3.3% | 3.2% | 16.3% |
| Total Revenues (Billion PKR) | 24.7 | 24.6 | 24.5 | 24.2 | 24 | 122 |
The additional revenue will finance the implementation of the new Electric Vehicle Policy 2026–30, sources added.
In addition to the EV initiative, the budget proposes incentives for the local production of batteries and chargers for laptops and smartphones. However, there is no proposal to increase taxes on smartphone imports.
good quality EVs are too expensive. byd otto3 which is a small SUV is almost 1 crore. they have to bring prices down to Alto , honda city level to attract customers
And who can afford evs ? They cost more than triple of what regular cars cost.
Another nonsense step
These people are crazy. They have gone cuckoo.. You think a common man can afford EVs? These twerps should be in jail rather than in the government
I can not agree more. These politicians and bureaucrats should be in prison, and for good, aameen
But dear Pakistanis like any other levy under the sky this levy will also be used for merry making, playing havoc with citizens and corruption.
Neelum Jhelum and other war levys have gone where God knows. So never mind this Ts. 122 billion will be peanuts. Even $ 122 billion won’t help these incompetent to core rulers and bureaucrats.
Once a legend said, “ek to ye parhy likhy ni hain uper se ye koshish b ni krty”
These idiots don’t know how and when to implement a policy, 1st make EV industry localize 100% which can produce cheap and reliable electric vehicles. Then install EV stations on every petrol pump then implement these policies. They are trying to follow western policies forgetting that this is Pakistan where per capita income is not even close to 10% the per capita income of those western nations. Idiots and idiots everywhere in the government.
Idiots are running the country
when the purpose is making haraam money right or wrong doesn’t matter, these are plans to carry on government lavishness. there is no welfare in it for anyone else.
No electricity here how costly EVs could be operated
I have a 10kw solar system with excess electricity. There are many more like me
If government is planning to increase petrol in order to shift people to EV’s then they need full throttle to produce EV’s cars local production and hence reduce car prices also for common people and local parts availability.
This petroleum tax for shifting people to EVs is just a ruse. They only want to Syphon off more money from our pockets as they very well known that EV are extremely expensive and the charging infrastructure is mostly nonexistent in this country.
What if their EV policy also ends up like solar as presently the govt is deviating away from solar policy on the behest of IPPs mafia and wapda’s incompetency.In EV, oil mafia is also additionaly involved along with the ones mentioned above…