ISLAMABAD: The Federal Board of Revenue (FBR) has notified revised customs duty provisions for the import of Hybrid Electric Vehicles (HEVs) in Completely Built Unit (CBU) form through the Finance Bill 2026, confirming that existing tariff rates will remain unchanged from July 1, 2026
According to the updated Fifth Schedule of the Customs Act, hybrid electric vehicles falling under Pakistan Customs Tariff (PCT) codes 8702.2090 and 8702.3090 will attract a concessional customs duty rate of 1%. Likewise, HEVs classified under PCT codes 8704.4100, 8704.4200, 8704.5100, and 8704.5200 will also enjoy the same 1% duty rate.
The concession, however, is available only to manufacturers importing the same variant that is intended to be assembled or manufactured locally. The incentive becomes applicable from the date of issuance of the manufacturing certificate and quota determination by the Engineering Development Board (EDB).
Under the notified conditions, automakers will be eligible to import specified HEV variants at the reduced duty rate once they obtain the required certification from the EDB. The measure is aimed at encouraging localization and supporting investment in environmentally friendly vehicles.
The latest notification forms part of the government’s efforts to implement the financial provisions of AIDEP 2021-26, which seeks to promote the development of Pakistan’s automobile sector and accelerate the adoption of cleaner transportation technologies.
Industry experts believe that continuation of concessional duties on hybrid vehicles will support local production and help manufacturers expand their product portfolios while maintaining affordability for consumers.
The Finance Bill 2026 also includes several measures related to electric vehicles and green mobility initiatives, reflecting the government’s commitment to promoting energy-efficient transportation and reducing dependence on conventional fuel-powered vehicles.
