Pakistan Budget FY2026-27: Who got taxed hard and who got protected?
The government has taken a targeted approach:
• Hit hardest: Imported cars above 2,000cc (40–41% FED) and luxury imported EVs above Rs20 million (up to 40% new FED).
• Protected: Locally-assembled EVs (1% sales tax kept till 2027), affordable EVs up to Rs20m (0% FED), EV parts & CKD kits (1%), hybrids (8.5% concessional GST unchanged), and solar panels (exemption maintained).
Premium smartphones also saw no relief and remain at 25% sales tax.
Bottom line: Luxury imports face higher duties, while local manufacturing, affordable green vehicles, and clean energy incentives are largely shielded.