The Federal Board of Revenue (FBR) briefed the National Assembly Standing Committee on Finance regarding the implementation of Federal Excise Duty on electric vehicles starting July 1, 2026.

Officials stated that electric vehicles priced above $75,000, which translates to over Rs. 20 million, will be subject to the new tax.

Electric vehicles with prices below this threshold will remain exempt from the duty, while luxury EV continue to face lower taxation compared to conventional internal combustion engine automobiles.

Committee members expressed varying perspectives on the policy direction and the practical infrastructure challenges currently facing the sector.

Committee member Shahida Akhtar highlighted the necessity of a clear policy for charging stations, questioning vehicle functionality given national electricity constraints.

Sharmila Faruqi urged a consistent government stance on promoting the sector, while Hina Rabbani Khar opposed the tax entirely, noting that electric options carry higher baseline costs than traditional vehicles and previously faced no 30 percent duty.