Sindh Extends Tax and Registration Incentives for Electric Vehicles by Two Years
KARACHI: The Sindh government has extended tax and registration incentives for electric vehicles (EVs) by two years to promote clean, environment-friendly and sustainable transportation across the province.
The decision was taken at a meeting of the Sindh Cabinet chaired by Chief Minister Syed Murad Ali Shah at the Chief Minister’s House in Karachi. The cabinet approved the continuation of tax and registration incentives for non-commercial electric vehicles until May 29, 2028.
Under the approved package, the registration fee for electric vehicles will remain at Rs1,000, while the annual motor vehicle tax for non-commercial electric vehicles will continue at Rs500. For electric motorcycles, a one-time lifetime motor vehicle tax of Rs500 will be applicable.
The cabinet also approved a luxury tax of Rs5,000 on electric vehicles equivalent to those with engines of 2,000cc or above. A Rs1,000 penalty will be imposed for late registration of an electric vehicle.
The incentives will remain applicable from May 30, 2026, to May 29, 2028. The cabinet also approved a proposal submitted by the Excise, Taxation and Narcotics Control Department regarding electric vehicles.
Chief Minister Murad Ali Shah said promoting electric vehicles was an important part of the Sindh government’s strategy to encourage clean and sustainable transportation. He said increased use of EVs would help reduce dependence on imported fuel, lower carbon emissions and improve urban air quality.
He added that continued tax incentives would encourage the use of electric vehicles in the province and play an important role in attracting investment in the electric mobility sector.
The chief minister reiterated that promoting electric mobility would contribute to reducing carbon emissions, tackling urban air pollution and developing a cleaner and more sustainable transport system in Sindh.
