Budget 2023–24: Huge Tax Relief for Hybrid Vehicles

The fiscal budget for 2023–24 has finally been made public, which is fantastic news for Pakistan's hybrid automobile market.

The customs tax (CD) on the import of hybrid electric vehicles (HEVs) in completely built-up (CBU) form has been decreased to 1%, according to the budget papers.

Additionally, the CD for the import of HEVs that are completely knocked down (CKD) units has been decreased.

According to the document, the CD for the import of HEV CKDs is 4% while the CD for the import of PHEV CKDs is 3%.

This ought to have an effect on hybrid vehicle costs in the Pakistani market and motivate a number of new businesses to participate in the hybrid car industry there.

On the other hand, the duty and taxes levied on vehicles above 1300 cc which are manufactured in Asia are being removed.

Apart from this, it has been proposed to reduce the rate of customs duty on import of non-locally manufactured commercial vehicles in the form of CKD from 10% to 5%.