The Federal Revenue Service (FBR) abolished additional customs duties on the import of 2 to 3-wheel electric vehicles, a Complete Unit (CBU) condition; rickshaw for electric cars, electric motorcycles and three-wheel electric loaders until June 30, 2025.
In this regard, the FBR issued a notification here on Wednesday to amend the S.R.O. 572 (I) 2020.
According to the notification, the additional customs duty would not be applicable on imports until June 30, 2025, of 2 to 3 wheel electric vehicles (CBU) covered by Pakistan Customs Tariff (PCT) codes 8703.8030 (electric rickshaw), 8711.6040 (electric motorcycle) and 8711.6060 (3-wheel electric loader).
The EV policy for two- and three-wheel electric vehicles had already been approved by the ECC. Exemption from additional customs duties and value added tax on imports of EV (2-3 wheels and HCVs) in CBU condition was proposed until June 30, 2025.
EV technology is at a training stage and comparatively expensive traditional fuel vehicles viz-a-viz. Governments around the world are trying to make this technology accessible through different financial and tax incentives, including disbursement of direct financial subsidies.