Sales Tax Cut on Locally Manufactured Hybrid Cars Up to 2,000cc

ISLAMABAD:** The federal government has reduced the sales tax imposed on locally manufactured hybrid electric vehicles (HEVs) with engine capacities of up to 2,000cc.

According to sources, the sales tax on locally manufactured hybrid electric vehicles up to 2,000cc has been reduced from 25 percent to 18 percent.

According to a notification issued by the Ministry of Finance, amendments have been made to SRO 297 issued on March 8, 2023, and SRO 370 issued on March 8, 2024.

The notification stated that a new amendment has also been incorporated into SRO 370, reducing the applicable sales tax rate on locally manufactured hybrid electric vehicles in the specified engine-capacity category.

The move is expected to provide relief to manufacturers and consumers in the local hybrid vehicle market.