Sindh approves two-year tax relief package for electric vehicles

Sindh Approves Two Year Tax Relief Package For Electric Vehicles

KARACHI – The Sindh Cabinet has approved a package for registration and tax incentives for electric vehicles and extended the present concessions for another two years to promote environmentally friendly and sustainable transport across the province.

Sindh Chief Minister Syed Murad Ali Shah was chairing the meeting of the provincial cabinet, and reaffirmed the provincial government’s commitment to encourage cleaner transportation.

CM Murad said the greater adoption of electric vehicles would help reduce the province’s dependence on imported fuel. The CM stated that the continuing tax incentives would encourage more people to switch to electric vehicles.

Under the cabinet’s decision, tax and registration concessions for non-commercial electric vehicles have been extended for another two years and will remain in effect until May 29, 2028.

The approved package retains the electric vehicle registration fee at Rs1,000.

The annual motor vehicle tax for non-commercial electric vehicles will remain at Rs500, while electric motorcycles will be subject to a one-time lifetime motor vehicle tax of Rs500.

The cabinet also approved a Rs5,000 luxury tax on electric vehicles with an equivalent engine capacity of 2,000cc or above.

A Rs1,000 penalty will be imposed on the late registration of electric vehicles.

According to the provincial government, the latest incentives will apply retrospectively from May 30, 2026, through May 29, 2028.

The Sindh government said the measures were aimed at promoting the use of electric vehicles, reducing fuel imports and supporting a cleaner and more sustainable transport system in the province.

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