Through Finance Act 2020, import of heavy electric vehicles has been subject to customs duty at the rate of one percent. Finance Act 2020 has made the duty at one percent, the part of Customs Act 1969.
As per the Act, the imports of electric buses, electric trucks and electric prime movers shall be subjected to one percent of customs duty and there is no condition attach to the imports.
However, imports of other electric vehicles including auto rickshaw, 3-wheeler loader and motorcycle shall be subjected to a reduced duty rate of 50 percent of the current tariff rate of customs duty as the First Schedule to the Customs Act, 1969 specifies.
Some conditions have been attached to the imports of such motor vehicles. As per the Federal Board of Revenue Pakistan (FBR), the concession has been made admissible for a period of five years with an immediate effect from 1st July 2020, on import of 10 electric vehicles (CBU – Completely Buildup Unit) of the same variant to the assembled / manufactured to the extent of maximum 200 units, to 2-3 wheeler segment, duly approved / certified by the Engineering Development Board (EDB).
Compliance with the EV Policy 2020 shall be monitored by the Engineering Development Board (EDB). And the FBR shall be immediately intimated by the EDB in case any manufacturer violates the further clearance at the concessional rate.