LAHORE – According to reports, the previously unknown rates for the New Energy Vehicle (NEV) adoption levy have now been officially declared by the Federal Board of Revenue (FBR). The levy aims to target local and imported vehicles with an Internal combustion engine (ICE).
The development comes at a time when the government strongly urges the use of electric and energy-efficient vehicles. Under the newly imposed tax regime, the valorem levy is set at 1% on the basis of the vehicle’s invoice. They will be applied to all cars under 1300cc.
The 1% rate will be the same for imported vehicles under the 1300cc category according to their assessed value. The levy for vehicles which fall between 1300cc to 1800cc is placed at 2% just like vehicles under 1300cc; the levy will be the same at 2% for local and imported vehicles.
ICE vehicles with engine capacities exceeding 1800 cc will be subject to a 3% levy, applicable to both local manufacturers and importers. This levy also applies to commercial vehicles. Imported buses and trucks with combustion engines will incur a 1% levy, and the same rate will apply to locally assembled buses and trucks.
