On Tuesday, the Sindh cabinet approved a package of tax and registration incentives for electric vehicles (EVs), stretching existing concessions for two more years as part of the provincial government’s efforts to encourage clean and sustainable transportation.
The decision was made at a cabinet meeting chaired by Sindh Chief Minister Murad Ali Shah, who said the promotion of electric vehicles would help reduce dependence on imported fuel, cut carbon emissions and improve air quality.
Under the approved package, the registration fee for electric vehicles will remain at Rs1,000, while the annual motor vehicle tax for non-commercial electric vehicles will continue at Rs500.
Electric motorcycles will be subject to a one-time lifetime motor vehicle tax of Rs500, while electric vehicles with engine capacities equivalent to 2,000cc or above will attract a luxury tax of Rs5,000.
The government has also approved a Rs1,000 penalty for delayed registration of electric vehicles.
The incentives will remain applicable from May 30, 2026, to May 29, 2028, effectively extending the tax and registration concessions for non-commercial electric vehicles for another two years.
proposal from the Excise Department on the taxation and registration of electric vehicles was approved by yhe Sindh Cabinet
Speaking at the meeting, Chief Minister Murad Ali Shah said encouraging the use of electric vehicles was a vital government strategy for promoting environmentally friendly and sustainable transport.
He said greater adoption of electric vehicles would help reduce reliance on imported fuel while lowering carbon emissions and tackling air pollution.
The chief minister also stressed that continued tax incentives were crucial for promoting electric vehicle adoption and attracting investment in the electric mobility sector.
The provincial government said the measures were aimed at promoting cleaner transportation, improving air quality and supporting the transition towards sustainable mobility in Sindh.