New federal excise duty structure introduces higher rates for premium imported electric vehicles while maintaining zero duty on lower-priced EVs.
The Federal Board of Revenue (FBR) has officially notified revised Federal Excise Duty (FED) rates for imported electric cars and sport utility vehicles (SUVs) brought into Pakistan in completely built unit (CBU) condition for the fiscal year 2026-27.
The updated duty structure has been incorporated into the Federal Excise Act, 2005, as amended up to June 30, 2026.
The notification outlines a tiered FED regime based on the customs value of imported electric vehicles, signaling the government’s continued effort to regulate the growing EV market while encouraging the adoption of affordable electric mobility solutions.
According to the revised schedule, imported electric cars and electric SUVs with a customs-assessed value of up to $75,000 will remain exempt from Federal Excise Duty.
The zero-duty rate is expected to support the import of relatively affordable electric vehicles and promote environmentally friendly transportation across the country.
However, higher-value electric vehicles will now attract additional taxation. Imported EVs with a customs value exceeding $75,000 but not surpassing $110,000 will be subject to a 30 percent ad valorem FED.
Meanwhile, luxury electric vehicles and SUVs valued above $110,000 will face a 40 percent ad valorem Federal Excise Duty.
The revised rates apply to vehicles whose value is determined under Section 25 of the Customs Act, 1969. Industry observers believe the updated tax structure is aimed at generating additional revenue from premium vehicle imports while maintaining incentives for lower-priced electric vehicles.
Pakistan’s electric vehicle market has witnessed steady growth in recent years, driven by rising consumer interest, government support for cleaner transportation, and increasing availability of EV models from international manufacturers. The latest FED revisions are expected to influence purchasing decisions, particularly in the premium EV segment.
Tax experts note that the changes form part of broader fiscal measures introduced for FY2026-27 and could impact the pricing and import volumes of high-end electric cars and SUVs.
Importers, dealers, and prospective buyers are advised to review the updated duty schedule to assess its implications on future vehicle imports and pricing strategies.