Budget 2024-25: In a new proposal, the government has suggested withdrawing tax exemptions enjoyed by electric cars valued above $50,000, high-level sources told ProPakistani.
Initially, imported electric cars received tax incentives to promote their import and adoption in Pakistan. However, these benefits are about to end, as electric vehicles priced above $50,000 will soon be taxed at the same rate as conventional cars. This change will impact high-end electric cars like the Audi e-Tron/e-Tron GT and BMW i8. In contrast, more affordable electric cars such as the MG ZS EV, MG4 EV, and Rinco Aria, which are priced under $50,000, will remain unaffected by this proposal.
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However, most electric cars are much more expensive than regular cars in the first place so it won’t have a major impact on their popularity and sales.
The government has also suggested raising the withholding tax on non-electric vehicles. This change will generally increase car prices for the public, who are already dealing with unprecedented inflation levels.
Remember, these are just proposals and haven't been approved yet. They are subject to change or cancellation, so take them with a grain of salt.
