0% / 30% / 40%
basic FED on imported CBU EVs by customs value
Enacted · Finance Act 2026
Vehicles — Budget 2025–26 vs 2026–27
Verified EV concessions, imported-vehicle excise duties, ICT motor-vehicle tax and Section 231B treatment in Pakistan.
Enacted 26 June 2026 · Effective 1 July 2026
Enacted 26 June 2026Effective 1 July 2026
- Reviewed against Finance Act 2026
At a glance
Vehicle budget changes overview
86%
additional special duty on imported 2000–3000cc vehicles
92%
additional special duty on imported vehicles above 3000cc
PKR 20,000
ICT lifetime motor tax up to 1000cc
What changed for vehicles?
| Measure | FY 2025–26 | FY 2026–27 | Impact |
|---|---|---|---|
| 1. Eligible locally made EVs — sales tax | 1% through 30 June 2026 | 1% through 30 June 2027 | Extended |
| 2. Eligible EV CKD kits — sales tax | Exempt through 30 June 2026 | Exempt through 30 June 2027 | Extended |
| 3. Imported CBU electric cars and SUVs — basic FED | No standalone customs-value schedule | 0% ≤ USD 75k; 30% > USD 75k–110k; 40% > USD 110k | New bands |
| 4. Imported vehicles 2000–3000cc — Special Excise Duty | No Special Excise Duty | 86% ad valorem, in addition to ordinary FED | New levy |
| 5. Imported vehicles above 3000cc — Special Excise Duty | No Special Excise Duty | 92% ad valorem, in addition to ordinary FED | New levy |
| 6. ICT motor-vehicle tax — up to 1000cc | PKR 10,000 lifetime | PKR 20,000 lifetime | Higher |
| 7. ICT motor-vehicle tax — 1001–2000cc | PKR 1,500 / 4,000 / 5,000 per year by cc band | 0.25% of invoice value per year | Value-based |
| 8. ICT motor-vehicle tax — above 2000cc | PKR 8,000 / 12,000 per year by cc band | 0.35% of invoice value per year | Value-based |
| 9. Section 231B registration and transfer advance tax | Existing registration and transfer rate tables | Same rate tables; only a housekeeping edit to subsection (6) | No rate change |
1. Eligible locally made EVs — sales tax
Extended- FY 2025–26
- 1% through 30 June 2026
- FY 2026–27
- 1% through 30 June 2027
2. Eligible EV CKD kits — sales tax
Extended- FY 2025–26
- Exempt through 30 June 2026
- FY 2026–27
- Exempt through 30 June 2027
3. Imported CBU electric cars and SUVs — basic FED
New bands- FY 2025–26
- No standalone customs-value schedule
- FY 2026–27
- 0% ≤ USD 75k; 30% > USD 75k–110k; 40% > USD 110k
4. Imported vehicles 2000–3000cc — Special Excise Duty
New levy- FY 2025–26
- No Special Excise Duty
- FY 2026–27
- 86% ad valorem, in addition to ordinary FED
5. Imported vehicles above 3000cc — Special Excise Duty
New levy- FY 2025–26
- No Special Excise Duty
- FY 2026–27
- 92% ad valorem, in addition to ordinary FED
6. ICT motor-vehicle tax — up to 1000cc
Higher- FY 2025–26
- PKR 10,000 lifetime
- FY 2026–27
- PKR 20,000 lifetime
7. ICT motor-vehicle tax — 1001–2000cc
Value-based- FY 2025–26
- PKR 1,500 / 4,000 / 5,000 per year by cc band
- FY 2026–27
- 0.25% of invoice value per year
8. ICT motor-vehicle tax — above 2000cc
Value-based- FY 2025–26
- PKR 8,000 / 12,000 per year by cc band
- FY 2026–27
- 0.35% of invoice value per year
9. Section 231B registration and transfer advance tax
No rate change- FY 2025–26
- Existing registration and transfer rate tables
- FY 2026–27
- Same rate tables; only a housekeeping edit to subsection (6)
The 86% and 92% figures are Special Excise Duty under new section 3(3B), expressly charged in addition to ordinary FED. They are not total all-in vehicle tax rates.
Example: imported CBU EV valued at USD 90,000
Applicable value band
> USD 75k to USD 110k
Basic FED rate
30%
Basic FED
USD 27,000 equivalent
The value band is determined using the customs value under Section 25 of the Customs Act. Rupee liability depends on the customs assessment and applicable exchange rate.
Explore budget impact by sector
Compare the enacted FY 2026–27 changes across taxpayers and industries.
Freelancers & IT
- 0.25% PSEB rate extended to Tax Year 2029
- Export collection: 1.25%
- Foreign-card WHT: 0.5%
Business & super tax
- 0% for most persons up to PKR 500M
- 8% above PKR 500M
- Banks, E&P and fertiliser remain at 10%
Property
- Section 7E repealed
- Sale WHT: 2.75%
- Purchase WHT: 1.25%
Vehicles
- Imported EV FED: 0% / 30% / 40% by USD value
- Imported 2000cc+ vehicles: new special duty
- ICT ≤1000cc: PKR 20,000 lifetime
Solar
- 10% sales tax continues
- No new Finance Act 2026 increase
Defence
- PKR 3.00T defence services
- PKR 822B military pensions, separate
- PKR 925.8B physical assets
Quick tools
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Frequently asked questions
What is the new tax on imported electric vehicles?
Imported CBU electric cars and SUVs now fall under a basic FED schedule based on customs value: 0% up to USD 75,000, 30% above USD 75,000 to USD 110,000, and 40% above USD 110,000. FY 2025–26 had no standalone customs-value schedule.
What is the Special Excise Duty on imported vehicles?
New Special Excise Duty under section 3(3B) charges 86% ad valorem on imported vehicles of 2000–3000cc and 92% above 3000cc. It is charged in addition to ordinary FED and is not a total all-in vehicle tax rate.
Are local electric-vehicle concessions still available?
Yes, and they run a year longer. Sales tax on eligible locally made EVs stays at 1% and eligible EV CKD kits stay exempt, both extended from 30 June 2026 to 30 June 2027.
How much is Islamabad motor-vehicle tax in FY 2026–27?
Vehicles up to 1000cc pay PKR 20,000 lifetime, up from PKR 10,000. Vehicles of 1001–2000cc move to 0.25% of invoice value per year and vehicles above 2000cc to 0.35% per year, replacing the previous fixed per-cc-band amounts.
Did Section 231B registration and transfer tax change?
No. The registration and transfer advance-tax rate tables are unchanged. Finance Act 2026 made only a housekeeping edit to subsection (6).
What FED applies to an imported EV worth USD 90,000?
It falls in the band above USD 75,000 to USD 110,000, so basic FED is 30%, or roughly USD 27,000 equivalent. The band is set by the customs value under Section 25 of the Customs Act, and the rupee liability depends on the customs assessment and exchange rate.
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