ISLAMABAD: The fiscal budget 2023-24 has finally been released, bearing good news for the hybrid vehicle segment in Pakistan.
According to the budget documents, the customs duty on the import of hybrid electric vehicles (HEVs) in a completely built-up (CBU) form has been reduced to one percent.
The customs duty for the import of completely knocked down (CKD) kits of HEVs has also been decreased. The budget suggests that the customs duty on HEV CKD import is 4 percent, while the customs duty on import of plugin hybrid electric vehicle (PHEV) CKDs is 3 percent.
This should impact the hybrid vehicle prices in the Pakistani market, and encourage many new players to invest in the hybrid vehicle segment in Pakistan.
It also merits mentioning that the custom duty on lithium-ion batteries is now zero percent. Battery packs are complex and expensive components that serve as a life source for electric vehicles. The reduction in customs duty for this part would also likely impact the prices of HEVs and PHEVs.
Although Pakistan does not have several locally assembled hybrid vehicle options in Pakistan, this decision would likely inspire other automakers to invest in this arena.
