Govt cuts HEV sales tax from 25% to 18%
The government has lowered the sales tax on locally manufactured hybrid electric vehicles (HEVs) with engine capacity up to 2000cc from 25% to 18%. The Finance Division has issued S.R.O. 1525(1)/2026 dated September 13, 2026, amending the sales-tax notification S.R.O. 297(1)/2023. “In exercise of the powers conferred by clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, read…
The government has reduced the sales tax on locally produced hybrid electric vehicles (HEVs) with engine capacities up to 2000cc from 25% to 18%. This change was confirmed by Ali Khizar, Director of Research at Business Recorder, who noted the reduction from 8-12% to 18% in a recent post on X. The amended notification, S.R.O. 1525(1)/2026, superseded the previous S.R.O. 297(1)/2023, effective immediately.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
