Incentives announced for electric vehicle parts importers

Islamabad: The federal government on Tuesday (June 30) announced incentives for the import of electric vehicles parts in the country by reducing the applicable custom duty to 1%, a news source reported. At the same time, the government introduced amendments in custom tariffs after passing the Finance Act 2020.

Read: EV Policy Approved: Pakistan aims for 30% electric cars on roads by 2030

According to sources affiliated with the Federal Board of Revenue (FBR), the board has created 11 new tariff lines for electric vehicles. The custom duty percentage on import of non-localised parts will be 15% and while the duty rate will be 15% plus additional custom duty on import of localised parts.

Read: Lahore to switch to electric buses to combat pollution

Some other tax reductions that were not part of the Finance Bill 2020 and were introduced later include the following:

• Income tax exemption on revenue generated from real estate investment trust
• Reduction in tax rates for electric vehicles
• Reduction in income tax on shipping businesses and providers of engineering services

Read: Pakistan to produce electric vehicles locally

The concession included in the Finance Bill for electric vehicles will be admissible for five years with effect from July 1, 2020.