6c:I[27201,["$1","$2","$3","$4","$5","$6","$7","$8","$9","$a","$b","$c","$d","$e","$f","$10","$11","$12","$13","$14","$15","$16","$17","$18","$19","$1a","$1b","$1c"],"IconMark"] 6d:I[829745,["$1","$2","$3","$4","$5","$6","$7","$8","$9","$a","$b","$c","$d","$e","$f","$10","$11","$12","$13","$14","$15","$16","$17","$18","$19","$1a","$1b","$1c","$4a","$4b","$4c"],"default"] 5c:["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}] 5d:["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}] 5e:["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}] 5f:["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}] 60:["$","div","4",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 61:["$","div","5",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 62:["$","div","6",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 63:["$","div","7",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 64:["$","div","8",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 65:["$","div","9",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 66:["$","div","10",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"$undefined"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],["$","div",null,{"className":"bg-gray-900 h-[1px] w-full"}]]}] 67:["$","div","11",{"className":"bg-[#e9ecef]","children":[["$","div",null,{"className":"flex space-x-12 p-[.8rem] border-b-2 border-white","style":{"borderBottom":"none"},"children":[["$","div",null,{"className":"rounded-lg w-[76px] min-w-[76px] h-[76px] bg-gray-300 animate-pulse"}],["$","div",null,{"className":"flex flex-col gap-[1px] w-full","children":["$","div",null,{"className":"text-textPrimary leading-[20px] font-bold text-f15 break-words pt-[3px] flex flex-col gap-[6px]","children":[["$","div",null,{"className":"space-y-2","children":[["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-full animate-pulse"}],["$","div",null,{"className":"h-[20px] bg-gray-300 rounded w-4/5 animate-pulse"}]]}],["$","div",null,{"className":"text-textPrimary flex items-center justify-between font-normal text-f14","children":[["$","div",null,{"className":"h-[18px] bg-gray-300 rounded w-20 animate-pulse"}],["$","div",null,{"className":"h-[16px] bg-gray-300 rounded w-16 animate-pulse"}]]}]]}]}]]}],false]}] 68:["$","div",null,{"className":"bg-primary rounded-t-none py-10 w-full h-[44px] flex items-center justify-center animate-pulse"}] 6a:["$","$L55",null,{"adSlot":"9255141740","fixedSize":{"width":300,"height":600}}] 6b:["$","$L55",null,{"adSlot":"9255141740","fixedSize":{"width":300,"height":600}}] 43:null 49:[["$","title","0",{"children":"EVs to Get Expensive in Pakistan as IMF Pushes 18% Tax"}],["$","meta","1",{"name":"description","content":"IMF urges Pakistan to impose 18% sales tax on locally made hybrid and electric vehicles, risking higher car prices and slower EV adoption."}],["$","meta","2",{"name":"application-name","content":"CarAdvisers"}],["$","meta","3",{"name":"keywords","content":"automobile blogs,car blogs,car tips,auto news,car maintenance,car buying advice,car selling tips,latest automobile trends,caradvisers blogs"}],["$","meta","4",{"name":"referrer","content":"origin-when-cross-origin"}],["$","meta","5",{"name":"robots","content":"index, follow"}],["$","meta","6",{"name":"apple-itunes-app","content":"app-id=org.reactjs.native.example.CarAdvisers, app-argument=https://caradvisers.com"}],["$","meta","7",{"name":"al:android:package","content":"com.caradvisers"}],["$","meta","8",{"name":"al:android:app_name","content":"CarAdvisers"}],["$","meta","9",{"name":"al:ios:app_store_id","content":"org.reactjs.native.example.CarAdvisers"}],["$","meta","10",{"name":"al:ios:app_name","content":"CarAdvisers"}],["$","meta","11",{"name":"al:web:url","content":"https://caradvisers.com"}],["$","link","12",{"rel":"canonical","href":"https://caradvisers.com/blogs/evs-to-get-expensive-in-pakistan-as-imf-pushes-18percent-tax"}],["$","meta","13",{"property":"og:title","content":"EVs to Get Expensive in Pakistan as IMF Pushes 18% Tax"}],["$","meta","14",{"property":"og:description","content":"IMF urges Pakistan to impose 18% sales tax on locally made hybrid and electric vehicles, risking higher car prices and slower EV adoption."}],["$","meta","15",{"property":"og:url","content":"https://caradvisers.com/blogs/evs-to-get-expensive-in-pakistan-as-imf-pushes-18percent-tax"}],["$","meta","16",{"property":"og:site_name","content":"CarAdvisers"}],["$","meta","17",{"property":"og:locale","content":"en_US"}],["$","meta","18",{"property":"og:image","content":"https://cdn.caradvisers.com/blogs/2026/01/01/evs-to-get-expensive-in-pakistan-as-imf-pushes-18percent-tax-01.webp"}],["$","meta","19",{"property":"og:image:width","content":"1200"}],["$","meta","20",{"property":"og:image:height","content":"630"}],["$","meta","21",{"property":"og:image:alt","content":"EVs to Get Expensive in Pakistan as IMF Pushes 18% Tax"}],["$","meta","22",{"property":"og:type","content":"article"}],["$","meta","23",{"property":"article:published_time","content":"Jan 1, 2026"}],["$","meta","24",{"property":"article:modified_time","content":"Oct 24, 2026"}],["$","meta","25",{"name":"twitter:card","content":"summary_large_image"}],["$","meta","26",{"name":"twitter:site","content":"@caradviserspak"}],["$","meta","27",{"name":"twitter:creator","content":"@caradviserspak"}],["$","meta","28",{"name":"twitter:title","content":"EVs to Get Expensive in Pakistan as IMF Pushes 18% Tax"}],["$","meta","29",{"name":"twitter:description","content":"IMF urges Pakistan to impose 18% sales tax on locally made hybrid and electric vehicles, risking higher car prices and slower EV adoption."}],["$","meta","30",{"name":"twitter:image","content":"https://cdn.caradvisers.com/blogs/2026/01/01/evs-to-get-expensive-in-pakistan-as-imf-pushes-18percent-tax-01.webp"}],["$","meta","31",{"name":"twitter:image:alt","content":"EVs to Get Expensive in Pakistan as IMF Pushes 18% Tax"}],["$","link","32",{"rel":"icon","href":"/assets/favicons/favicon-new.svg","type":"image/svg+xml"}],["$","link","33",{"rel":"icon","href":"/assets/favicons/web-app-manifest-192x192.png","sizes":"192x192","type":"image/png"}],["$","link","34",{"rel":"icon","href":"/assets/favicons/web-app-manifest-512x512.png","sizes":"512x512","type":"image/png"}],["$","link","35",{"rel":"apple-touch-icon","href":"/assets/favicons/apple-touch-icon.png","sizes":"180x180"}],["$","$L6c","36",{}]] 6e:T8f0,

Pakistan’s auto industry could be heading for another major shake-up, as fresh developments suggest that locally manufactured hybrid and electric vehicles may soon lose their tax relief.

According to officials familiar with the matter, the International Monetary Fund has urged Pakistan to withdraw the existing sales tax exemptions on locally assembled hybrid and electric cars and bikes. If the proposal is approved, these vehicles will be taxed at the standard 18% sales tax rate from the next fiscal year.

What the IMF Is Asking For

During ongoing talks with the Ministry of Industries and Production, the IMF has reportedly asked for the removal of locally manufactured hybrid and electric vehicles and bikes from the Eighth Schedule. This would place them under the normal sales tax regime, ending the preferential treatment they currently enjoy.

The proposal is part of broader fiscal reforms aimed at widening the tax base and reducing exemptions across multiple sectors.

Current Tax Structure on Local Hybrids

At present, Pakistan offers reduced sales tax rates on locally assembled hybrid electric vehicles to encourage cleaner transport and reduce fuel imports.

Vehicle Category	Engine Capacity	Sales Tax Rate
Hybrid vehicles	Up to 1800cc	8.5%
Hybrid vehicles	1801cc to 2500cc	12.75%

These concessions are granted under the Eighth Schedule, which is set to expire on June 30, 2026, according to official records.

6f:T1683a,

What Changes If 18% Tax Is Applied

If the IMF recommendation is implemented, all locally produced hybrid and electric vehicles and bikes will be taxed at 18%. This would effectively remove the price advantage that has helped these vehicles gain traction in Pakistan’s price-sensitive market.

Industry experts warn that higher taxes could slow down EV adoption, raise car prices, and discourage local investment at a time when global automakers are shifting aggressively toward electric mobility.

Impact on Pakistan’s Auto Market

Over the past few years, reduced sales tax has played a key role in pushing hybrid cars into the mainstream, especially as fuel prices continue to rise. Many buyers turned to hybrid technology for better fuel economy and lower running costs.

A sudden increase in taxation could reverse this trend, making hybrid and electric vehicles less accessible for middle-income buyers and slowing Pakistan’s transition toward energy-efficient transport.

FAQs

Will hybrid cars become more expensive in Pakistan?
Yes, if the 18 percent sales tax is enforced, locally assembled hybrid cars are likely to see noticeable price increases.

When could the new tax rates take effect?
The proposed changes are expected to apply from the next fiscal year, subject to government approval.

Are imported hybrid and electric cars affected?
The current discussion focuses on locally manufactured vehicles. Imported vehicles already follow a different tax structure.

Why is the IMF pushing for this change?
The IMF aims to reduce tax exemptions and increase government revenue as part of fiscal reforms.

Does this mean EV incentives are ending in Pakistan?
Not entirely, but removing sales tax exemptions would significantly weaken existing incentives for electric vehicles.

Final Thoughts

Pakistan stands at a critical crossroads in its automotive journey. While fiscal discipline remains important, policies that support cleaner, fuel-efficient vehicles have long-term economic and environmental benefits. A balanced approach will be crucial to ensure that revenue targets do not come at the cost of innovation, investment, and sustainable mobility in the local auto industry.

Join the conversation:
Facebook: Car Advisers Pakistan
LinkedIn: Car Advisers Pakistan

Stay connected with Car Advisers Blogs for trusted reviews, market intelligence, and the future of mobility in Pakistan.

58:["$","div",null,{"className":"rounded-lg ck-content ck-editor","children":[["$","$1f","0",{"children":[["$","$L6d",null,{"text":{"type":"text","value":"$6e"},"insertAdAfterFirstParagraph":true}],false,false,false,false,false,false]}],["$","$1f","1",{"children":[false,["$","div",null,{"className":"blogLink","children":[["$","hr",null,{"className":"bg-[#FFFFFF]","style":{"height":"2px","display":"$undefined","marginTop":0}}],["$","p",null,{"className":"text-[#667085] text-[16px] flex gap-[8px] font-semibold flex-wrap my-[16px]","style":{"fontWeight":"500"},"children":[["$","span",null,{"className":"whitespace-nowrap uppercase","children":"You may also like to read :"}],["$","a",null,{"href":"https://caradvisers.com/blogs/petrol-diesel-prices-reduced-as-pakistan-welcomes-2026","target":"_blank","rel":"noopener noreferrer","className":"text-[#067EFF] underline hover:text-[#065dff]","children":"Petrol, Diesel Prices Reduced as Pakistan Welcomes 2026"}]]}],["$","hr",null,{"className":"bg-[#FFFFFF] ","style":{"height":"2px","display":"$undefined"}}]]}],false,false,false,false,false]}],["$","$1f","2",{"children":[["$","$L6d",null,{"text":{"type":"text","value":"$6f"},"insertAdAfterFirstParagraph":false}],false,false,false,false,false,false]}]]}]