Islamabad:
In an attempt to accelerate the adoption of electric vehicles (EV) and the transport of energy efficiency, the Federal Income Board (FBR) has imposed the adoption tax for energy vehicles in all manufactured vehicles, assembled and imported locally that work with traditional internal combustion engines (ICE).
The FBR has formally issued a notification that describes the tax rates, which is structured to favor environmental friendly vehicles on conventional with fuel. The authorities said that the new tax regime aims to discourage the dependence of fossil fuels and promote a change towards modern low emission technology.
According to the first schedule of the Finance Law, ice vehicles with engines under 1300cc will now be subject to a 1% AD VALEM Tax. For vehicles produced or assembled locally in this category, the tax will apply to the price of the invoice, including tariffs and taxes.
Similarly, for imported cars of less than 1300cc, the 1% tax will be calculated based on the customs evaluated by customs, which includes applicable tariffs and taxes. For vehicles with motor capabilities between 1300cc and 1800cc, the tax has been established at 2%, again applicable in the bill for local units and customs value for imports.
Meanwhile, vehicles exceeding 1800cc will attract a 3% tax in VALEM, either manufactured locally or brought from abroad.
