Fears of electric vehicles becoming expensive in Pakistan

Islamabad: Electric vehicles in Pakistan could become considerably more expensive if the government withdraws the existing concessional sales-tax treatment under discussion in the new Auto Policy 2026–31.
Recent reports say the IMF has raised objections to preferential tax treatment for EVs and that the government is considering moving eligible electric vehicles from a 1% concessional sales tax to the standard 18% rate. However, no such increase has been formally notified yet.
At an illustrative pre-tax value of Rs10 million, sales tax would rise from about Rs100,000 at 1% to Rs1.8 million at 18%, an increase of Rs1.7 million, assuming the same taxable value. ARY News
Importantly, FBR’s FY2026–27 budget documents currently extend EV-related sales-tax relief until June 30, 2027, so the reported 18% rate remains a proposal under discussion, not a final tax change. FBR