Business Desk 
Jul 18, 2025
An undated image of cars parked. — Unsplash
The Federal Board of Revenue (FBR) has officially notified a new levy for New Energy Vehicle (NEV) adoption in Pakistan.
The FBR stated that the new tax mainly targets vehicles with internal combustion engines (ICE). FBR aims to push people to switch to electric and energy-efficient vehicles across Pakistan.
The new levy is part of the First Schedule of the Finance Act. FBR imposed tax on both locally made and imported cars.
New tax on local and imported fuel cars
Here are all the details of the imposed levy on vehicles in Pakistan:
Locally assembled or manufactured vehicles
Engine capacity below 1300cc
Levy: 1% of invoice price (including duties and taxes)
Engine capacity from 1300cc to 1800cc
Levy: 2% of invoice price (including duties and taxes)
Engine capacity above 1800cc
Levy: 3% of invoice price (including duties and taxes)
Buses and trucks (internal combustion engine)
Levy: 3% of invoice price (including duties and taxes)
Imported vehicles in Pakistan
Engine capacity below 1300cc
Levy: 1% of assessed value (including duties and taxes)
Engine capacity from 1300cc to 1800cc
Levy: 2% of assessed value (including duties and taxes)
Engine capacity above 1800cc
Levy: 3% of assessed value (including duties and taxes)
Buses and trucks (internal combustion engine)
Levy: 1% of invoice price (including duties and taxes)
With the FBR’s new tax policy, the government plans to move away from fuel-powered vehicles.
