High-value imported electric vehicles worth more than $75,000 will face 30% or 40% Federal Excise Duty under Finance Act 2026 amendments.
ISLAMABAD, September 15, 2026: The Federal Board of Revenue (FBR) has brought high-value imported electric vehicles (EVs), including electric cars and SUVs, into the Federal Excise Duty (FED) regime, with rates of up to 40 per cent under amendments introduced through the Finance Act, 2026.
The FBR issued Federal Excise Circular No. 1 of 2026 to explain major amendments to the Federal Excise Act, 2005 introduced through the Finance Act, 2026.
Previously, luxury vehicles were subject to FED at rates of up to 40 per cent, while electric vehicles, including electric cars, SUVs and other EVs, were excluded from the duty.
Under the revised provisions, high-value electric vehicles have now been brought within the federal excise taxation framework.
30% FED on EVs valued above $75,000
Electric vehicles valued at more than US$75,000 and up to US$110,000 will be subject to FED at 30 per cent.
Meanwhile, electric vehicles with a value exceeding US$110,000 will attract FED at 40 per cent.
The measure effectively extends the excise duty regime applicable to luxury vehicles to high-value imported EVs, bringing them within the taxation framework that already applies to other luxury vehicles.
FBR extends EV FED exemption
Alongside the new duty on high-value luxury EVs, the FBR has extended the existing exclusion of electric vehicles from FED on imports and local supplies for another year.
Serial Nos. 55 and 55A of Table-1 of the First Schedule to the Federal Excise Act, 2005 provide for the imposition of FED on imported and locally manufactured vehicles.
Electric vehicles were previously excluded from FED chargeability until June 30, 2026.
The FBR has now extended the exclusion period by one year, allowing the existing treatment to continue until June 30, 2027, subject to the revised provisions applicable to high-value luxury EVs.
Finance Act 2026 revises EV taxation
The amendments form part of the broader taxation measures introduced through the Finance Act, 2026.
The revised framework seeks to bring high-value electric vehicles into the federal excise regime while retaining preferential treatment for other electric vehicles within specified limits.
The changes distinguish between luxury EVs above the prescribed value thresholds and other electric vehicles that continue to benefit from the extended FED exclusion.