Govt announces tax breaks, lower duties for New Energy Vehicles
The federal government has begun consultations on the New Energy Vehicle (NEV) Policy for 2025-30, aiming to promote sustainable transportation and reduce carbon emissions.
This policy emphasizes local NEV manufacturing, reducing fossil fuel dependence, and cutting greenhouse gas emissions. To encourage investment, the government offers key incentives, including tax breaks, reduced import duties on NEV parts, and green financing options for eco-friendly technologies.
The Engineering Development Board (EDB) drafted the policy intending to achieve a zero-emission fleet by 2060. It mandates a nationwide charging infrastructure, requiring oil marketing Companies to install Level 3 chargers at 10 percent of their stations. Private firms investing in charging points will receive tax exemptions and subsidized electricity.
The policy includes customs duty cuts to 1 percent on NEV parts and 10 percent on fully built units until 2027, alongside sales tax exemptions for local components. It also sets battery recycling standards and encourages the establishment of recycling centers through incentives.
Additional incentives extend to heavy commercial vehicles, with reduced customs duties until domestic NEV production scales up. This policy reflects a significant step toward a greener future and sustainable energy practices in Pakistan.
