The Senate Standing Committee on Industries and Production was informed on Tuesday that the government is considering imposing taxes on imported electric vehicles (EVs) in order to reduce the transport sector’s $9 billion import bill.
According to sources, the meeting was chaired by Senator Khalida Ateeb and attended by Senators Danish Kumar and Syed Masroor Ahsan, along with officials from the Ministry of Industries and Production and the Federal Board of Revenue (FBR). Senate Secretariat sources said officials informed the committee that efforts are underway to impose taxes on imported electric vehicles, while taxes on locally manufactured EVs would remain minimal or zero. Additional duties have already been imposed on the import of EV parts that are now being manufactured locally.
The Ministry of Industries and Production has directed provincial governments not to levy registration fees on electric vehicles, to provide uniform number plates across the country, and to charge lower toll fees for EVs.
Sources said the committee was briefed on the existing policy for establishing electric vehicle manufacturing units in the country, particularly for motorcycles and bikes. According to the briefing, 17 licenses have been issued for three-wheelers and 77 licenses for two-wheelers so far.
The government aims to shift 30 percent of the country’s vehicle fleet to electric vehicles by 2030. According to the statement, 2.2 million vehicles will be distributed to the public by 2030 through government subsidies.
Officials informed the committee that there are currently 20 million vehicles and more than 20 million motorcycles in the country. This year, 116,000 motorcycles and 3,170 rickshaws will be provided to the public. Over the next five years, Rs120 billion will be collected through a carbon levy, which will be used to provide subsidies for electric vehicles.
The committee was also told that, in collaboration with the Board of Investment, work is underway on a one-window operation, and licenses of manufacturers who are not exporting have been cancelled.
New Energy Vehicles (NEV) Policy 2025–30
The objectives of the New Energy Vehicles Policy 2025–30 include reducing vehicle emissions, improving air quality, making efficient use of surplus electricity generation, and reducing oil imports. The policy also lays the foundation for the development of the local NEV industry, technology transfer, and the creation of green jobs, while promoting coordination between federal and provincial governments.
According to sources, under the policy, a target has been set to convert 30 percent of new sales of bikes, rickshaws, passenger cars, light commercial vehicles, buses, and trucks to New Energy Vehicles (NEVs) by 2030.
