Pakistan, May 31 -- Electric and hybrid vehicles in Pakistan could become more expensive in the upcoming fiscal year as the government considers ending existing tax concessions in the federal budget for 2026-27. The proposed move follows discussions with the International Monetary Fund (IMF), which has reportedly opposed continuing preferential tax treatment for environmentally friendly vehicles and related products.

Currently, electric vehicles enjoy a highly reduced sales tax rate of just one percent, while hybrid vehicles are subject to an eight percent rate. However, government officials are preparing proposals that could bring both categories under the standard 18 percent sales tax. If approved, the changes would significantly incre...