The federal government is planning to introduce toll tax exemptions on motorways and national highways for New Energy Vehicles (NEVs) under the upcoming Auto Policy 2026–31.
NEVs include battery-electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). The proposed incentive is aimed at promoting clean transportation and accelerating electric vehicle adoption across Pakistan.
According to sources, the government is also preparing major reforms to Pakistan’s long-standing auto policy structure. Under the proposed framework, Additional Customs Duties (ACD) will be completely phased out by FY2029, while Regulatory Duties (RD) will be reduced by 80 percent by FY2030.
In addition, all SRO-based tariff concessions currently supporting the auto sector are expected to be eliminated by FY2030 as part of broader trade and industry reforms.
The policy also proposes a gradual reduction in vehicle import and assembly duties. Import duties on Completely Built Unit (CBU) vehicles are expected to decrease from the current 50–100 percent range to 35–75 percent over the next five years.
Similarly, tariffs on Completely Knocked Down (CKD) units used for local vehicle assembly will be reduced from 30 percent to 20 percent during the same period.
Officials say the reforms aim to bring Pakistan’s average applied tariff below 6 percent by FY2030 while encouraging local manufacturing and greater localization within the electric vehicle sector.
