EV Bikes Makers Concerned Over Hike in Taxes
EV bikes Makers have expressed concern over the recent increase in sales tax on EV bikes—from 1% to 18%—which they said could slow adoption and discourage investment. The SAPM assured participants that the government is reviewing the issue and will ensure that fiscal measures align with the national EV roadmap.
SAPM on Industries and Production Haroon Akhtar Khan has vowed stronger support for Pakistan’s electric vehicle (EV) industry, stressing that local manufacturing of EV bikes will drive economic growth, job creation, and environmental benefits.
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Chairing a high-level meeting in Islamabad on Tuesday with representatives from Pak Star Automobiles and other EV bike producers, Mr. Khan said the government’s industrial policy is focused on promoting indigenous production. He noted that under the second phase of the first-year plan, a mandatory local manufacturing ratio has been established to deepen localization and reduce import dependency.
Mr. Khan reaffirmed that Prime Minister Shehbaz Sharif’s economic vision centers on empowering domestic manufacturers through targeted incentives and sustainable industrial reforms. He emphasized that building local production capacity for EV components would not only benefit consumers through lower costs but also strengthen Pakistan’s balance of payments by curbing fuel imports.
Highlighting the wider environmental implications, Mr. Khan said electric mobility is critical for reducing urban air pollution and achieving Pakistan’s clean energy transition targets. “Local production of EV components will generate employment, enhance technical skills, and contribute to industrial diversification,” he said, directing the Engineering Development Board (EDB) to collaborate with manufacturers and vendors to resolve regulatory and supply chain challenges.
The EV policy, introduced under the Ministry of Industries and Production, aims to accelerate Pakistan’s shift toward green transport. According to the EDB, over 20 domestic assemblers are now engaged in EV two- and three-wheeler manufacturing, with local production expected to rise sharply in 2026 amid growing demand and government-backed incentives.
