Auto Industry & Policy Blogs

Auto Policy Stuck Again as Commerce and Industries Split Over Tariffs, PM Asked to Decide

The Commerce and Industries ministries still disagree on car and parts tariffs, so the ministerial committee on the Auto Policy 2026 to 2031 will ask PM Shehbaz Sharif to decide. Industries wants the Tariff Policy Board to approve interim duties in the meantime.

Auto Policy 2026-31 levy on petrol cars and EV tax impact on prices

Auto Policy 2026-31: What a 2% to 10% Levy on Petrol Cars and Lower EV Tax Would Mean for Prices

Waqas Afzal9 Min Read

The PM-approved draft Auto Policy 2026-31 would add a 2% levy on 1,001-2,000cc petrol and diesel cars and 10% above 2,000cc, and cut sales tax on qualifying EVs, REEVs and PHEVs. It still needs cabinet and IMF approval and has no effective date. Draft estimates for Corolla, Fortuner, Tiggo 7 PHEV, XPeng L03 and Chery Q.