EV sales tax removal proposed

The Ministry of Commerce has recommended the removal of cap on electric vehicle (EV) batteries for cars, vans and sports utility vehicles (SUVs), as well as elimination of 25% sales tax on EVs. The issue was taken up in a recent meeting of the steering committee focused on policies for EVs. During the meeting, the additional secretary of the Ministry of Commerce recommended the scrapping of cap on EV batteries for cars, vans and SUVs and the withdrawal of 25% sales tax on EVs valuing at above Rs4 million. The secretary of the Ministry of Industries and Production (MoIP) directed the Engineering Development Board (EDB) and the New Energy Vehicle (NEV) Policy team to consider those proposals. Standards for EVs were suggested to be devised by Pakistan Standards and Quality Control Authority (PSQCA) in collaboration with EDB, with a focus on value addition to encourage local manufacturing.