Sindh extends tax incentives for electric vehicles

The Sindh government has approved a two-year extension of tax and registration incentives for non-commercial electric vehicles (EVs).

The decision was taken during a meeting of the Sindh Cabinet chaired by Chief Minister Murad Ali Shah at the Chief Minister’s House.

Under the approved package, the incentives for electric vehicles will remain in place until May 29, 2028. The cabinet also approved a proposal submitted by the Excise, Taxation and Narcotics Control Department regarding EV-related taxes and registration.

Speaking at the meeting, Chief Minister Murad Ali Shah said the use of electric vehicles was essential for promoting environmentally friendly and sustainable transportation.

He said the transition towards electric vehicles would also help reduce Pakistan’s dependence on imported fuel. He added that continuing tax incentives would encourage people to adopt electric vehicles across the province.

According to the cabinet spokesperson, the registration fee for electric vehicles will remain at Rs1,000.

The annual motor vehicle tax for non-commercial electric vehicles will also remain at Rs500.

For electric motorcycles, the government has approved a one-time lifetime motor vehicle tax of Rs500.

Meanwhile, electric vehicles with an engine-equivalent capacity of 2,000cc or above will be subject to a luxury tax of Rs5,000.

The cabinet has also fixed a Rs1,000 penalty for the late registration of an electric vehicle.

The incentives will apply from May 30, 2026, to May 29, 2028.

The Sindh government said the continuation of these incentives was aimed at encouraging the adoption of electric vehicles and supporting cleaner transportation in the province.

The move is also expected to contribute to efforts to reduce fuel consumption and promote more sustainable mobility.