Budget 2026-27 Introduces New Tax Structure for Imported Electric Vehicles
The federal government has introduced a revised tax regime for imported completely built-up (CBU) electric vehicles under the Budget 2026-27. While customs duties on imported EVs have been reduced, new Federal Excise Duty (FED) rates have been imposed on high-value electric vehicles.
Budget 2026-27 Revises Tax Structure for Imported Electric Vehicles
Under the previous tax structure, imported EVs valued below $50,000 were subject to a 25% customs duty, while vehicles above $50,000 faced a 50% customs duty along with an additional 6% customs duty. No Federal Excise Duty was applicable on imported electric vehicles.
Government Retains 1% Tax Regime for Pakistan’s EV Industry Until 2027
The new budget reduces customs duty on CBU EVs to 30% and lowers the additional customs duty to 4%. However, electric vehicles priced between Rs. 20 million and Rs. 30 million will now be subject to a 30% FED, while EVs valued above Rs. 30 million will face a 40% FED.
The revised taxation policy is expected to increase the cost of premium electric vehicles while offering some relief through lower customs duties. Industry observers believe the new measures could significantly affect the import and pricing of luxury EVs in Pakistan.
Government Cuts Customs Duty but Imposes FED on Premium Electric Vehicles
| Year | Category | Customs Duty | Regulatory Duty | Additional Customs Duty | FED |
| 2026 | EV below Rs. 2 crore | 25% | 0% | 0% | 0% |
| 2026 | EV above $50k, value Rs. 2-3 crore | 30% | 0% | 4% | 30% |
| 2026 | EV above $50k, value above Rs. 3 crore | 30% | 0% | 4% | 40% |
