The fiscal budget for 2023-24 has finally been released, which is great news for Pakistan’s hybrid car segment.
Customs Duty On Hybrid Vehicles
The customs duty (CD) on the import of hybrid electric vehicles (HEVs) in completely built-up (CBU) form has been reduced to 1%, according to a document available.
The CD for the import of completely knocked down (CKD) HEV kits has been reduced as well. According to the document, the CD on HEV CKD import is 4%, while the CD on plugin electric vehicle (PHEV) CKD import is 3%.
This should have an impact on HEV car prices in Pakistan and encourage several new players to invest in the car segment.
It’s also worth noting that the CD on lithium-ion batteries has dropped to 0%. Battery packs are complex and expensive components that provide EVs with power. The decrease in CD for this part will most likely have an impact on the prices of HEVs and PHEVs.
Despite the fact that Pakistan does not have many locally assembled hybrid car options, this decision is likely to inspire other automakers to invest in this area.
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