ISLAMABAD – The federal government has proposed a cut in various taxes on both imported and locally-manufactured vehicles in Budget 2021-22 to facilitate the public.
Finance Minister Shaukat Tarin while presenting the third budget of the PTI-led government said that Value Added Tax on locally-manufactured vehicles is being abolished.
He added that all vehicles manufactured in Pakistan will be exempted from Advance Custom Duty, adding that custom duty for electric vehicles is being reduced for one year.
The government also proposed a decrease in taxes on locally manufactured heavy bikes and certain types of trucks and tractors.
It has also proposed a cut in sales tax from 17% to 1% for electric vehicles as the government aims at promoting EVs to cut carbon emissions and tackle climate change-related challenges.
It also proposed abolishing Customs and regulatory duty on imported vehicles of up to 850cc.
More to follow…
