ISLAMABAD ( June 21, 2026): After the implementation of the new budget, which electric vehicles will be subject to federal excise duty and which will be exempted? The new budget will be implemented in Pakistan from July 1, 2026. The latest findings add a new dimension to an already closely watched situation.

The Broader Picture

Tracing the events that led here provides important context for what follows.

Federal Excise Duty ( FED) is also being levied on electric vehicles in the new budget.

In this regard, a meeting of the Finance Committee of the Country-wide Assembly was held, in which the issue of implementation of FED on electric vehicles was discussed.

Reports further indicate that fBR authorities advised the committee members that there is no federal excise duty on electric vehicles worth up to $ 75,000.

Expert Analysis

The analysis from informed observers points to several important takeaways.

Electric vehicles priced above 2 crores in Pakistani currency will be taxed, vehicles priced below this will not be taxed.

Adding further dimension to the story, on this occasion, member Shahida Akhtar asked the FBR officials to tell the policy on electric charging stations along with electric vehicles, because until there are no electric charging stations in the country, how will the vehicles run.

Notably, committee member Sharmila Farooqui said that the government should have a policy, promote electric vehicles or not.

Impact on Americans

Looking at the practical effects, the outlook remains significant and wide-ranging.

The luxury category is as well being removed from electric vehicles.

Against this backdrop, bilal Azhar Kayani said that luxury electric vehicles are furthermore taxed less than other vehicles.

Reports further indicate that member Committee Hina Rabbani confirmed that electric vehicles are somewhat expensive compared to ICE vehicles.

In what observers are describing as a key detail, he added that 30 percent duty on electric vehicles was not available earlier.

In what observers are describing as a key detail, cars are innovating at a rapid pace, with something new every 6 months.

Looking Ahead

For now, the situation continues to evolve, with no definitive resolution in sight. Those closely following the issue are preparing for further developments in what has become a significant and consequential story.