EV Import Duty Pakistan 2026-27 — Complete Guide to Electric Car Taxes
Budget 2026-27 introduced a tiered customs duty on imported electric vehicles: 0% for EVs under Rs. 20M, 30% for Rs. 20–30M, and 40% above Rs. 30M. This guide covers all EV taxes, local vs imported, and what changed.
Pakistan’s electric vehicle (EV) policy has undergone significant changes in Budget 2026-27. The one-size-fits-all approach has been replaced with a tiered customs duty structure that favours affordable EVs while taxing luxury imports. Here is everything you need to know.
Budget 2026-27: New EV Customs Duty Structure
Effective July 1, 2026 (Finance Act 2026):
| EV Value | Customs Duty |
|---|---|
| Up to Rs. 20 million | 0% |
| Rs. 20 million – Rs. 30 million | 30% |
| Above Rs. 30 million | 40% |
Additionally, a Federal Excise Duty (FED) now applies to luxury imported EVs valued at Rs. 20 million (Rs. 2 crore) or above. The specific FED rate will be notified separately under the FED schedule.
Why tiered? The government’s stated goal is to promote green mobility while discouraging luxury EV imports that drain foreign exchange. A Rs. 500,000 Chinese EV and a Rs. 80 lakh Tesla serve different markets — the tiered structure treats them accordingly.
What This Means in Practice
Affordable EVs (Under Rs. 20M): Zero Duty — No Change
Affordable mass-market EVs below Rs. 20 million continue to enjoy 0% customs duty on import. This covers most Chinese-origin small EVs (MG, BYD Atto series, JAC, Ora, etc.) at typical market prices.
Example: A BYD Atto 3 imported at Rs. 9–12 million faces no customs duty under the new rules.
Mid-Range EVs (Rs. 20–30M): New 30% Duty
EVs valued between Rs. 20–30 million now face a 30% customs duty — a new imposition that significantly raises the landed cost.
Example: An EV landing at Rs. 25 million in customs-assessed value:
- Customs duty (30%): Rs. 7.5 million
- Other levies (IEVS, GST etc.): additional
- Estimated final cost to buyer: Rs. 35–38 million
This range captures mid-luxury EVs like certain BYD models, MG HS EV, and similar.
Luxury EVs (Above Rs. 30M): 40% Duty + FED
EVs above Rs. 30 million in value face 40% customs duty plus FED. This effectively prices luxury EVs (Tesla Model S/X/Y, Porsche Taycan, Mercedes EQ series, BMW i series) significantly higher.
Example: A luxury EV assessed at Rs. 60 million:
- Customs duty (40%): Rs. 24 million
- FED (rate TBD): additional
- Total pre-delivery cost: potentially Rs. 90M+
Comparing: Pre-Budget vs Post-Budget EV Import Rules
| Vehicle Value | Old Duty Structure | New (July 2026) |
|---|---|---|
| Up to Rs. 20M | 0% | 0% (unchanged) |
| Rs. 20–30M | 0% or 10% | 30% (significant increase) |
| Above Rs. 30M | 10–25% | 40% + FED (major increase) |
The pre-budget regime was more uniformly generous. The shift reflects the government’s concern about luxury EV imports consuming scarce foreign exchange without providing mass-market mobility benefits.
Local EV Assembly: Concessions Extended
While import duties on mid-to-high-end EVs increased, the budget was generous to local EV assembly:
- CKD (Completely Knocked Down) exemptions for electric buses and trucks extended through June 30, 2027
- Local EV assembly concessions under the EV Policy maintained
- GST and customs relief for locally assembled EVs (below a certain value threshold) continued
What this means: Locally assembled EVs (like those from SAZGAR, Master Changan, and new entrants) remain significantly cheaper than fully imported alternatives — the duty structure incentivizes local manufacturing.
Complete EV Tax Picture (Imported CBU)
For a fully imported (CBU — Completely Built Up) electric vehicle, here are all the levies:
| Levy | Rate (Under Rs. 20M) | Rate (Rs. 20–30M) | Rate (Above Rs. 30M) |
|---|---|---|---|
| Customs Duty | 0% | 30% | 40% |
| Federal Excise Duty (FED) | 0% | TBD | TBD |
| Sales Tax (GST) | 17–18% | 17–18% | 17–18% |
| IEVS (Infrastructure surcharge) | 1% | 1% | 1% |
| Additional Customs Duty (ACD) | Varies | Varies | Varies |
Note: GST and IEVS apply on the customs-assessed value + duty (cascading). The effective tax burden on a luxury EV is therefore significantly higher than the headline duty rate alone.
Conventional Vehicles: New FED on Large Engines
Budget 2026-27 also introduced a new Federal Excise Duty (FED) on conventional (petrol/diesel) vehicles with engine sizes above 2,000cc. This affects premium SUVs and sedans:
- Toyota Fortuner (2.7L/2.8L diesel): subject to new FED
- Land Cruiser (3.5L/4.0L): subject to new FED
- BMW 3/5/7 series (2.0L+): affected
- Mercedes C/E/S class: affected
This effectively penalises large-engine conventional vehicles while the 0% duty on affordable EVs remains intact — a clear policy direction toward electrification.
Pakistan’s EV Market: Current Players
Locally Assembled (Budget-Friendly):
- SAZGAR BAIC BE-7 — locally assembled electric SUV, priced ~Rs. 7–9M
- Master Changan Uni-T EV — in development
- Revo EV (3-wheelers, motorcycles) — mass market
Imported (Under Rs. 20M — 0% duty):
- MG ZS EV — popular mass-market choice
- BYD Atto 3 — growing market share
- ORA Good Cat — entry-level Chinese EV
Imported (Rs. 20–40M range — now subject to duty):
- BYD Seal, Atto 5 — luxury tier
- MG HS EV — premium crossover
Should You Buy an EV in Pakistan?
Pros:
- Running cost: EVs cost Rs. 2–4 per km (vs Rs. 8–12 per km for petrol at Rs. 299/litre)
- Maintenance: significantly lower — no engine oil, fewer moving parts
- Government incentives: 0% duty on sub-Rs. 20M imports, local assembly concessions
- Environmental: zero direct emissions
Cons:
- Higher purchase price vs comparable petrol vehicles
- Charging infrastructure limited outside major cities
- Load-shedding can disrupt overnight charging routines
- Resale value uncertainty in Pakistan’s nascent EV market
- Import-dependent supply chain (spare parts, battery replacement)
Charging Infrastructure in Pakistan
Current situation (2026):
- Public fast chargers: available in Islamabad, Lahore, Karachi (limited locations)
- Home charging: 32A wall box charger available from most EV brands at Rs. 80,000–200,000 installation cost
- Charging time (home AC): 8–12 hours for full charge
- Charging time (DC fast charger): 30–60 minutes to 80%
The government has announced plans for a national EV charging network under the EV Policy 2030, but rollout remains in early stages.
Frequently Asked Questions
Is a Rs. 15 million imported EV still duty-free?
Yes — EVs valued up to Rs. 20 million face 0% customs duty under Budget 2026-27 (same as before).
What is the registration token tax for EVs?
Motor vehicle token tax (annual registration tax) for EVs is typically at the minimum rate in most provinces — check with your provincial excise and taxation office as rates vary by province and vehicle weight.
Can I import a used EV?
Used car import policy in Pakistan is complex and restrictions have tightened. Generally, used vehicle imports require specific authorizations. Check the latest SRO notifications from the Ministry of Commerce before attempting used EV imports.
What happened to the Rs. 5 million customs duty exemption for EVs?
Earlier policies provided blanket duty exemptions for a wider range of EVs. Budget 2026-27 maintained 0% duty only for EVs up to Rs. 20M, introducing duty for higher-value imports to protect against luxury consumption of foreign exchange.
Based on Finance Act 2026 (Budget 2026-27), effective July 1, 2026. Specific FED rates on luxury EVs subject to SRO notification. Verify customs duty at the Pakistan Customs website or with a licensed customs agent before import. Not financial advice.
HisaabKar Editorial Team
M.Phil Economics · Verified Financial Content
This guide is researched and maintained by economists with formal training in Pakistani public finance and macroeconomics. All data is sourced from official government publications (FBR, SBP, PBS, PMEX). Learn about our credentials →