ISLAMABAD – Representatives from Pakistan’s domestic electric vehicle (EV) and motorcycle manufacturing sector voiced significant apprehensions on Tuesday regarding the government’s decision to raise the sales tax on EV motorcycles from 1% to 18%. They called on authorities to reconsider the policy, warning that it could undermine the industry’s growth and broader environmental objectives.
In a discussion with Haroon Akhtar Khan, the Special Assistant to the Prime Minister on Industries and Production, industry leaders argued that the tax hike would drive up prices, dampen consumer demand, and ultimately prevent both the government and manufacturers from meeting established targets. This, they emphasized, would particularly hinder efforts to combat environmental pollution through the adoption of cleaner transportation options.
Khan responded by reaffirming the government’s dedication to addressing the challenges faced by suppliers and producers in the sector. He pledged that appropriate incentives would be extended to foster expansion and sustainability.
Industry experts highlighted the critical role of governmental support and localized production in driving the EV motorcycle market’s potential in Pakistan. The meeting, attended by delegates from Pak Star Automobiles and other EV motorcycle producers, covered topics such as incentive programs, domestic manufacturing goals, and regulatory hurdles within the EV landscape.
Khan stressed that prioritizing the local assembly of EV motorcycle parts would yield substantial advantages for the economy and end-users alike. He pointed out that the initial phase of the plan includes a required localization quota to bolster homegrown manufacturing expertise.
The Special Assistant reiterated Pakistan’s commitment to empowering local entrepreneurs with tailored incentives, paving the way for enduring progress in the manufacturing industry.
An official from the Engineering Development Board (EDB) cautioned that the elevated sales tax could jeopardize the government’s initiatives to promote electric mobility. Khan elaborated on the dual benefits of this transition, noting that EV motorcycles would substantially curb air pollution and decrease reliance on imported petroleum, thereby easing the national import burden. Additionally, domestic component production is expected to create jobs and stimulate industrial advancement.
Khan affirmed that the national EV Policy aims to advance both economic development and ecological preservation. He instructed the EDB to engage directly with EV motorcycle manufacturers and suppliers to pinpoint obstacles and recommend viable strategies for the sector’s advancement.
