The International Monetary Fund (IMF) has called on Pakistan to end the sales tax exemption currently granted to locally manufactured hybrid and electric vehicles and bikes, sources told ProPakistani.
The IMF has recommended that, starting from the next fiscal year, the exemption be withdrawn, and a standard sales tax rate of 18 percent be imposed.
At present, locally produced hybrid vehicles benefit from a sales tax exemption under the Eighth Schedule. However, this exemption is set to expire on June 30, 2026, according to official documents.
Currently, locally manufactured hybrid electric vehicles up to 1800cc are subject to an 8.5 percent sales tax, while those between 1801cc and 2500cc are taxed at 12.75 percent.
During discussions with the Ministry of Industries and Production, the IMF insisted on removing these vehicles and bikes from the Eighth Schedule and including them in the normal tax regime.
If implemented, the move would end the preferential tax treatment for locally manufactured hybrid and electric vehicles and bikes from the next fiscal year.
If accepted, the move would significantly change the tax structure for the local hybrid vehicle industry, which has benefited from reduced rates to promote cleaner and more energy-efficient transport in Pakistan.
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Who cares, this is all about GOP non seriousness of policies. For past 75+ years we have been running the country on adhoc basis. Go for IPP, CNG, LPG, Solar. everyone shifts to it, now stop using. I wish that CJ takes suo moto about GOP immature attitude toward long-term planning and policies. Unfortunately we cannot succeed like this.
Pakistan biggest problem is poor long term planning by our past and current gurus to keep industry stable with prices and keeping customers interest alive too, same as solar fate.. Pakistan djrsnt really know if they have to pursue EV replacement to ICE vehicles. Talk emissions, but hardly any implementation across all industries
When you have 60 to 70 yr old incompetent lumber 1 dictating you
What to do u expect
We already pay that fees already. What was that then ?
Either imf or the govt is lying then. Registration fee, sales tax both are already paid.. not to mention a 200% tariff.
Plus 0 cars are produced in pakistan
0
Because you being a Ch*tya buy foreign manufacturered hybrid cars not Pakistan manufactured.