The fiscal budget for 2023–2024 has been released, which is fantastic news for Pakistan's hybrid car sector. The customs duty on imported fully completed hybrid electric vehicles (HEVs) will now just be 1%, according to the budget documents.
Additionally, the customs fee on imported HEVs in entirely disassembled units has been reduced.
According to the budget paper, the tax for importing plug-in hybrid electric vehicle (PHEV) components in knocked-down units is now 3% and the tax for importing HEV components in knocked-down units is now 4%.
These adjustments are anticipated to have a favourable effect on hybrid car costs in the Pakistani market and inspire new companies to get involved in the hybrid car market.
Additionally, the duty and taxes levied on Asian-made automobiles with engines larger than 1300 cc are being removed. In addition, it has been suggested that the 10% customs tax rate on the import of commercial cars made abroad in the form of partially assembled components be reduced to 5%.
Overall, these modifications are intended to strengthen Pakistan's hybrid auto industry, lower the cost of hybrid cars, and draw capital to the sector.