The Federal Cabinet on Tuesday approved the new Electric Vehicle (EV) policy for four wheelers.
According to a report by Geo News, the new policy stipulates rules for electric-run four-wheelers along the lines of import and export, taxation, registration, and customs duty.
The salient features of the new policies were shared on Twitter by the Federal Minister for Industries and Production Hammad Azhar soon after the government approved it.
According to the salient features of the new EV policy, additional customs duty, as well as Additional Sales Tax (AST) on the import of EV cars, will now be removed.
Under the new policy, only 1% tax will be levied on the import of EV parts for manufacturers, while the government also waived the registration and annual renewal fee of EVs for the ICT sector.
There will be only 1% sales tax for locally made EVs up to 50kwh and light commercial vehicles up to 150 kwh.
The duty on import of charging equipment has now been capped at 1%, while the Federal Excise Duty (FED) already does not apply to EVs.
Per the new policy, import of plant and machinery for manufacturing of EVs will not be free of duties.