Sindh Extends Electric Vehicle Tax and Registration Incentives Until 2028

KARACHI: The Sindh government has extended tax and registration incentives for electric vehicles (EVs) for another two years as part of its efforts to promote clean, environment-friendly and sustainable transport in the province.

The decision was taken at a meeting of the Sindh Cabinet chaired by Chief Minister Syed Murad Ali Shah at the Chief Minister House. The cabinet approved a package of tax and registration concessions aimed at encouraging the adoption of electric vehicles.

Under the decision, the incentives for non-commercial electric vehicles will remain effective from May 30, 2026, to May 29, 2028.

The cabinet approved the proposal submitted by the Excise, Taxation and Narcotics Control Department concerning EV registration and taxation.

According to the approved package, the registration fee for electric vehicles will remain fixed at Rs1,000, while the annual motor vehicle tax for non-commercial EVs will remain at Rs500.

For electric motorcycles, the government has fixed a one-time lifetime motor vehicle tax of Rs500.

The cabinet also approved a Rs5,000 luxury tax for electric vehicles with an engine capacity of 2,000cc or above, or its equivalent. A Rs1,000 late registration penalty has also been fixed for electric vehicles.

Chief Minister Murad Ali Shah said promoting electric vehicles would help reduce the province’s dependence on imported fuel while lowering carbon emissions and urban air pollution.

He said encouraging the use of EVs was an important part of the Sindh government’s strategy for cleaner and more sustainable transportation.

The chief minister added that continued tax relief would encourage greater EV adoption across the province and help attract investment in the electric mobility sector.

He said wider use of electric vehicles would contribute to improved air quality in urban areas by reducing carbon emissions.

With the extension of the incentives, the Sindh government aims to accelerate the transition towards cleaner transportation while supporting the growth of the electric mobility sector.