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.
Pakistan Hybrid and EV Taxes in 2026: What Is Law Now and What Is Still Draft
Waqas Afzal13 Min Read
Pakistan’s hybrid and electric-vehicle tax rules are currently split between enacted tax law and the still-unfinished Auto and Auto Parts Manufacturing Policy 2026–31. As of 24 September 2026, qualifying locally manufactured hybrid electric vehicles with engines up to 2,000 cc are no longer subject to the earlier 25% Table-II treatment. S.R.O. 1525(I)/2026, effective from 13 September 2026, moves those qualifying vehicles back to the standard 18% sales-tax framework. Specified locally assembled four-wheel EVs and certain EV CKD kits also continue to benefit from relief extended through 30 June 2027 under the FY2026–27 tax measures. By contrast, reported Auto Policy 2026–31 proposals covering future GST structures, EV financing, tariff changes, localisation and export-linked incentives are not yet final law.