ISLAMABAD: The Senate Standing Committee on Finance and Revenue has approved the Customs (Amendment) Bill, 2026, aimed at implementing financial provisions of the Automotive Industry Development and Export Policy (AIDEP) 2021-26 and extending customs duty concessions for electric vehicles and related components.
The committee reviewed the proposed amendments to the Customs Act, 1969 clause by clause before unanimously recommending the bill for Senate approval.
During the meeting, Federal Board of Revenue Member Customs (Policy) Ashaad Jawwad informed the committee that the government had proposed extending customs duty concessions on imports of electric vehicle parts and components until June 30, 2026.
According to officials, the move is aimed at promoting green transportation and encouraging local manufacturing of electric vehicles in Pakistan.
Jawwad informed the committee that the federal cabinet had initially approved the EV policy on June 16, 2020, granting concessional customs duties for five years from July 1, 2020 on imports of EV-specific parts for electric two- and three-wheelers, completely built-up electric two- and three-wheelers imported by manufacturers and components for electric heavy commercial vehicles, including trucks, buses and prime movers.
The concessions were incorporated into Part-V(A) of the Fifth Schedule to the Customs Act through the Finance Act, 2020.
Officials said that under the Automotive Industry Development and Export Policy 2021-26, approved by the federal cabinet on December 21, 2021, the government extended existing concessions for electric two- and three-wheelers and heavy commercial electric vehicles until June 30, 2026.
The policy also expanded concessions to include imports of EV-specific parts for light commercial vehicles and vans on the same basis as other four-wheelers.
According to the proposed amendment, the concessions available under AIDEP 2021-26 will be aligned with provisions listed in Part-V(A) of the Fifth Schedule to the Customs Act.
The amendment also extends customs duty concessions on imports of completely built electric vehicles until June 30, 2026 for up to 10 units of the same variant intended for local assembly or manufacturing.
For the two- and three-wheeler segments, the concession will apply to a maximum of 200 units.
Officials said the concession would only apply to vehicles approved and certified by the Engineering Development Board under the EV Policy 2020.
The Engineering Development Board will monitor compliance with the policy and notify the Federal Board of Revenue in case of violations, after which further concessional clearances would be stopped.
