Pakistan, July 19 -- The Federal Board of Revenue (FBR) has notified the rate of New Energy Vehicle (NEV) adoption levy on locally manufactured/assembled vehicles and imported vehicles. The new tax regime targets internal combustion engine (ICE) vehicles to promote the adoption of electric and energy-efficient alternatives.

According to the First Schedule of the Finance Act, the manufacturer will pay 1% ad valorem of the invoice price, inclusive of duties and taxes, on all ICE motor vehicles assembled or manufactured in Pakistan with engine capacity less than 1300CC. Person importing ICE motor vehicle will pay 1% ad valorem of assessed value, inclusive of duties and taxes, on the import of all ICE motor vehicles with engine capacity less...