IMF condition may raise sales tax on EVs in upcoming Budget

Budget 2026–27: tax relief on EVs, hybrids and solar panels likely to end - HUM News English

ISLAMABAD: The federal government is considering ending sales tax exemptions on electric vehicles, hybrid cars and solar panels in the upcoming 2026–27 budget, according to sources. Officials said there is a strong possibility that a standard 18 per cent sales tax could be imposed on electric and hybrid vehicles, as tax relief measures in the sector come under review. Sources added that the International Monetary Fund (IMF) has reportedly reject…

IMF condition may raise sales tax on EVs in upcoming Budget

ISLAMABAD: The International Monetary Fund (IMF), as part of its conditions, is reportedly pushing for a significant increase in sales tax on electric vehicles in the upcoming federal budget, raising it from 1% to 18%. According to sources, the next fiscal budget is expected to include measures aimed at reducing or completely eliminating tax exemptions and concessional packages currently available to the public and business sectors. Officials sa…