FBR notifies NEV adoption levy on local, imported vehicles
The new tax regime targets internal combustion engine (ICE) vehicles to promote the adoption of electric and energy-efficient alternatives.
According to the First Schedule of the Finance Act, the manufacturer will pay 1% ad valorem of the invoice price, inclusive of duties and taxes, on all ICE motor vehicles assembled or manufactured in Pakistan with engine capacity less than 1300CC.
Person importing ICE motor vehicle will pay 1% ad valorem of assessed value, inclusive of duties and taxes, on the import of all ICE motor vehicles with engine capacity less than 1300CC.
The manufacturer will pay 2% ad valorem of invoice price, inclusive of duties and taxes, on all ICE motor vehicles assembled or manufactured in Pakistan with engine capacity from 1300CC to 1800CC.
Meanwhile, the person importing ICE motor vehicle would pay 2% ad valorem of assessed value, inclusive of duties and taxes, on all ICE motor vehicles imported in Pakistan with engine capacity from 1300CC to 1800CC.
The manufacturer will pay 3% ad valorem of invoice price inclusive of duties and taxes, on all ICE engine motor vehicles assembled or manufactured in Pakistan with an engine capacity of more than 1800CC.
All ICE engine motor vehicles imported in Pakistan with an engine capacity of more than 1800CC would be subjected to 3% ad valorem of assessed value, inclusive of duties and taxes.
The levy would apply to a person importing ICE motor vehicle.
In addition, imported buses and trucks with combustion engines will be charged 1%, while locally assembled buses and trucks will see a levy of 1%.
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