Islamabad:
In order to accelerate the adoption of electric vehicles (VE) and energy -efficient transport, the Federal Board of Return (FBR) has imposed an adoption of energy vehicles on all manufactured, assembled and imported vehicles that operate on traditional internal combustion engines (ICE).
The FBR has officially published a notification describing the levy rates, which is structured to promote vehicles adapted to the environment compared to conventional fuel vehicles. Officials said the new tax regime was aimed at discouraging dependence on fossil fuels and promoting a change towards modern low -emission technology.
According to the first annex of the finance law, ICE vehicles with engines less than 1300 cc will now be subject to an ad valorem levy of 1%. For vehicles produced or assembled locally in this category, the levy will apply to the price of the invoice, including rights and taxes.
Similarly, for imported cars of less than 1,300 cm3, the 1% levy will be calculated on the basis of the values evaluated in customs, including the applicable duties and taxes. For vehicles with motor capacities between 1300 cm3 and 1800 cm3, the direct debit was set at 2%, again applicable to the price of the invoice for local units and the customs value for imports.
Meanwhile, vehicles exceeding 1800 cm3 attract an ad valorem direct debit of 3%, whether made locally or brought from abroad.
