Govt exempts locally made hybrid vehicles up to 2000cc from 25% sales tax

PSX Update • Sep 14, 2026

The Federal Government has exempted locally manufactured or assembled hybrid electric vehicles with engine capacity up to 2000cc from the 25% sales tax levied on the supply of locally manufactured vehicles which brings it to the standard sales tax r

September 14, 2026 (MLN): The Federal Government has exempted locally manufactured or assembled hybrid electric vehicles with engine capacity up to 2000cc from the 25% sales tax levied on the supply of locally manufactured vehicles which brings it  to the standard sales tax rate of 18%, through a notification issued by the Finance Division. The Ministry of Finance and Revenue, through SRO 1525(I)/2026 &nbs...