Budget 2024-25: Tax breaks on hybrid, luxury EVs ended ‘to boost local industry’

In a bid to appease the local assemblers, the government has abolished customs duty on the import of hybrid cars and luxury electric vehicles (EVs). The decision has irked used car importers, who said that it would benefit the assembler of these vehicles rather than consumers. On the other hand, the local assemblers of hybrid vehicles must be satisfied as their meeting with Prime Minister Shahbaz Sharif a few days before the new budget paid off. The government gave concessions on the import of hybrid vehicles in 2013 to end the huge price difference between hybrid and fossil fuel vehicles. Now, the price difference has shrunk and the assembly of hybrid vehicles has kicked off. As a result, exemptions are being abolished to promote the local industry. The government said the reason for taking back concessions on luxury EVs is that the users and importers of $50,000 worth of imported EVs should pay taxes and duties.