Budget 2024-25: govt withdraws waiver on imported hybrid, luxury EV

ISLAMABAD: The government has eliminated the waiver/exemption on the import of hybrid and luxury electric vehicles in the budget for the fiscal year 2024-25.

According to the budget document, the customs duty on hybrid vehicles, introduced in 2013 to address the significant price difference between hybrid and conventional vehicles due to new technology, is now being withdrawn.

The document explains that the price gap between the two types of vehicles has narrowed and domestic production of hybrid vehicles has begun, prompting the government to remove this concession to boost the local industry.

Additionally, the waiver on the import of luxury electric vehicles has also been terminated. The budget document states that those who can afford to import vehicles worth $50,000 and above should be able to pay the additional taxes and duties.

Other notable changes in the federal budget include increased prices for mobile phones, cement and paper alongside a higher tax rate on the purchase and sale of property. Branded clothes, shoes, and leather products have also become more expensive, with increased taxes on buying, selling, and business activities for non-filers.

Furthermore, the petroleum levy on petroleum products has been raised by 33 per cent, with the levy on petrol and diesel increasing from Rs60 to Rs80 per litre. The petroleum levy on high octane, light diesel, and ethanol has been increased by 50 per cent.