Budget 2023–24: Huge Tax Relief for Hybrid Vehicles
The fiscal budget for 2023-24 has finally been released, which is great news for Pakistan's hybrid automotive sector.
According to the budget papers, the customs duty (CD) on the import of hybrid electric vehicles (HEVs) in a completely built-up (CBU) form has been reduced to 1%.
Furthermore, the CD for the import of completely knocked down (CKD) HEVs has been reduced.
This should have an impact on hybrid vehicle prices in the Pakistani market and encourage a number of new enterprises to enter the hybrid car industry there.
The CD for the import of HEV CKDs is 4%, while the CD for the import of PHEV CKDs is 3%, according to the document.
On the other hand, the duty and taxes placed on Asian-made vehicles with displacements more than 1300 cc are being eliminated.
Aside from that, it has been proposed to cut the customs duty rate on non-locally produced commercial cars in the form of CKD from 10% to 5%.
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