The National Assembly Standing Committee on Industries and Production has taken notice of what it described as double duty being imposed on electric vehicle chargers, raising concerns that the existing tax treatment could negatively affect the development of Pakistan’s EV infrastructure.
The committee observed that additional taxation on EV charging infrastructure may work against the government’s broader objective of promoting electric vehicles and green energy. Higher duties on chargers ultimately increase the cost of establishing charging networks, which can discourage investment and may also increase the cost passed on to businesses and end consumers.
This development illustrates why taxation cannot always be viewed purely as a revenue measure. In emerging sectors such as electric mobility, the structure of customs duties and other taxes can materially influence investment decisions and the pace of market development. The committee has therefore directed the Ministry of Finance, Ministry of Commerce and FBR to review the duty structure and consider whether the existing tax framework is properly aligned with Pakistan’s stated EV promotion policy.