Karachi (Commerce Desk) — The Sindh government has extended tax and registration incentives for electric vehicles (EVs) for another two years to promote an environmentally friendly and sustainable transport system.
A meeting of the provincial cabinet was held at the Chief Minister’s House under the chairmanship of Sindh Chief Minister Syed Murad Ali Shah, where approval was granted to retain tax and registration incentives for non-commercial electric vehicles.
According to the cabinet’s decision, the facility will remain in place until May 29, 2028, while recommendations regarding electric vehicles from the Excise, Taxation and Narcotics Control Department were also approved.
Under the decision, the electric vehicle registration fee will remain at Rs1,000, while the annual motor vehicle tax on non-commercial electric vehicles will remain Rs500. A one-time lifetime motor vehicle tax of Rs500 will be charged on electric motorcycles.
The cabinet approved a luxury tax of Rs5,000 on electric vehicles with an engine-equivalent capacity of 2,000cc or above, while a Rs1,000 penalty will be imposed in case of delayed vehicle registration. These incentives will remain effective from May 30, 2026, to May 29, 2028.
Sindh Chief Minister Syed Murad Ali Shah expressed his commitment to promoting environmentally friendly modes of transport, saying that increased use of electric vehicles would help reduce dependence on imported fuel while also lowering carbon emissions and urban air pollution.
According to Syed Murad Ali Shah, encouraging electric vehicles is an important part of the provincial government’s policy. The continuation of tax incentives is expected to increase EV adoption in the province and encourage investment in the sector.
He said that increasing the use of electric vehicles would not only reduce carbon emissions but also improve urban air quality. Under the Sindh cabinet’s decision, tax and registration incentives for electric vehicles will continue to support clean, environmentally friendly and sustainable transportation.