Pakistan, Nov. 6 -- Pakistan's proposed Auto Policy 2026-31 raises a fundamental question about tax fairness: why should a conventional vehicle face 18% General Sales Tax (GST), while expensive electrified vehicles receive substantially lower rates?

Under the proposed structure, the reported GST rates are:

* Conventional ICE vehicles: 18%

* Hybrid Electric Vehicles (HEVs): 18%

* Plug-in Hybrid Electric Vehicles (PHEVs): 9%

* Range-Extended Electric Vehicles (REEVs): 6%

* Battery Electric Vehicles (BEVs): 1%

Nobody disputes the need to encourage cleaner transportation. Pakistan needs to reduce petroleum dependence, improve air quality and accelerate electrification.

But environmental objectives do not eliminate the need for fiscal ...