Local electric vehicle (EV) and motorbike manufacturers have expressed serious reservations over the recent decision to increase the Sales Tax on EV bikes from 1% to 18% and have requested the government to reconsider this move.
Concerns Over Price Hike and Policy Goals
During a meeting with Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, local industry representatives stated that the increase in Sales Tax will lead to a significant surge in the prices of EV bikes, potentially causing a drop in sales. They warned that this decision would prevent both the government and the industry from achieving their goals, particularly the target of reducing environmental pollution.
Government Assurances and Policy Focus
Special Assistant Haroon Akhtar Khan assured the industry representatives that the government is committed to resolving all issues faced by local industrialists and manufacturers and will provide incentives for the sector’s growth.
Sources confirmed that the meeting included representatives from Pak Star Automobiles and other EV bike manufacturers, with detailed discussions held on local production targets, policy matters, and the second phase of the EV scheme.
Mr. Haroon Akhtar Khan emphasized that the local manufacturing of EV bike components would not only benefit the national economy but also provide better results for consumers. He mentioned that the mandatory localization ratio has been set under the second phase of the EV Policy’s first year to promote self-reliance in the country.
He stated that the government’s vision is to put local industrialists on the path of sustainable industrial development by providing targeted incentives.
EDB’s Role and Future Directives
An official from the Engineering Development Board (EDB) noted that the high Sales Tax on EV bikes could undermine the government’s efforts to promote electric vehicles.
Haroon Akhtar Khan reiterated that the EV Policy is designed not only to foster industrial growth but also to ensure environmental sustainability. He directed the EDB to consult with EV bike manufacturers and suppliers to identify challenges and propose solutions.
