IMF ‘opposes’ tax relief for imported EVs ahead of budget 2026-27
Key takeaways
- Sources said the IMF has recommended increasing the sales tax on imported electric vehicles to 25 per cent, instead of the current concessional rate of 1 per cent.
- Meanwhile, Prime Minister Shehbaz Sharif has directed officials to safeguard employment opportunities linked to Pakistan’s local automotive industry and support domestic manufacturing.
- As part of measures aimed at promoting local industry, the government is considering a range of incentives in the next fiscal year’s budget.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize ISLAMABAD: The International Monetary Fund (IMF) has opposed proposals to provide tax concessions on imported electric vehicles (EVs) in the upcoming federal budget 2026-27, ARY News reported on Wednesday, citing sources.
Sources said the IMF has recommended increasing the sales tax on imported electric vehicles to 25 per cent, instead of the current concessional rate of 1 per cent. The lender has also objected to extending further tax relief for imported EVs.
Meanwhile, Prime Minister Shehbaz Sharif has directed officials to safeguard employment opportunities linked to Pakistan’s local automotive industry and support domestic manufacturing.