Islamabad:
In an attempt to accelerate the adoption of electrical vehicles (EVS) and energy efficient transport, the Federal Board of Revenue (FBR) has introduced energy vehicle uptake on all locally manufactured, total and imported vehicles running on traditional internal combustion engines (ICE).
FBR has formally issued a review describing the frequencies of Levy, which is structured to favor environmentally friendly vehicles rather than conventional fuel -powered. Officials said the new tax regime is aiming to deter dependence on fossil fuel and promote a shift against modern, low emission technology.
According to the first schedule of the Finance Act, ice cream vehicles with engines less than 1300cc will now be subjected to a 1% ad -valorem tax. For locally produced or total vehicles in this category, the tax will apply to the invoice price, including duties and taxes.
Similarly, for imported cars under 1300cc calculated 1% tax based on the customs -assessed value, including applicable duties and taxes. For vehicles with engine capacity between 1300cc and 1800cc is set to 2%, which in turn is valid on the invoice price for local units and the customs value of imports.
Meanwhile, vehicles exceeding 1800cc will attract a 3% ad Valorem Levy, whether manufactured locally or brought in from abroad.
