FBR Notifies New Energy Vehicle Levy on Petrol and Diesel Cars
The Federal Board of Revenue (FBR) has officially announced new levy rates aimed at accelerating the adoption of electric and energy-efficient vehicles in Pakistan. This step is part of the government’s broader strategy to reduce emissions and promote cleaner transportation options.
What Is the NEV Adoption Levy?
The levy targets internal combustion engine (ICE) vehicles—both locally manufactured and imported—based on engine size and vehicle type. Here’s a breakdown of the new charges:
✅ Levy Rates for Locally Assembled & Imported ICE Vehicles
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Engine capacity below 1300cc:
🔹 1% ad valorem levy on invoice or assessed value (includes duties and taxes) -
Engine capacity between 1300cc and 1800cc:
🔹 2% levy -
Engine capacity above 1800cc:
🔹 3% levy
✅ Levy Rates for Commercial Vehicles
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Imported buses and trucks:
🔹 1% levy on assessed value -
Locally assembled buses and trucks:
🔹 1% levy on invoice value
These levies apply equally to imported and locally produced ICE vehicles, sending a clear signal in favor of New Energy Vehicles (NEVs) such as electric and hybrid cars.
Why It Matters
The NEV levy is designed to:
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Encourage a shift toward eco-friendly vehicles
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Reduce Pakistan’s reliance on fossil fuels
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Promote investment in electric vehicle (EV) infrastructure
More updates on exemptions or incentives for electric vehicles are expected in future policy announcements.
