ISLAMABAD (Kashmir English): The federal government is likely to impose a five-year levy on gasoline-powered vehicles in the upcoming fiscal budget to promote electric vehicles (EVs) in the country, local media has reported.
The levy would be imposed on both imported and locally manufactured petrol- and diesel-driven vehicles.
EV Fund
Besides discouraging petrol- and diesel-powered vehicles, the government has also decided to establish an EV Fund to support the transition toward electric mobility.
According to the media reports, if approved and implemented, this levy could generate a revenue of Rs25-30 billion annually, amounting to Rs125-150 billion over the next five years.
The government plans to use the collected revenue to finance the new five-year Electric Vehicle Policy for 2026-30.
In the federal budget for fiscal year 2025-26, the government is likely to set an inflation target of 7.5%, an agricultural growth target of 4.5%, GDP target of 4.2%, an industrial growth target of 4.4%, and a services sector growth target of 4%.
The Annual Plan Coordination Committee (APCC) is likely to convene on June 2 to finalise the Public Sector Development Program (PSDP) and the annual development plans.
