In the upcoming budget, the federal government intends to introduce an additional levy on petrol and diesel vehicles to create a dedicated Electric Vehicle (EV) fund, aiming to raise Rs. 122 billion over five years to support Pakistan’s shift to petroleum-free transportation. Here is your content presented in a clear and structured table format:
Proposed Federal Excise Duty (FED) on ICE Vehicles (FY26–FY30)
Vehicle Category
Base Rate
FY26
FY27
FY28
FY29
FY30
5-Year Total (%)
Two- and Three-Wheelers
1%
3%
3%
2.9%
2.8%
2.8%
14.5%
4-Wheelers (Below 1300cc)
1%
3.2%
3.2%
3.2%
3.2%
3.2%
16%
4-Wheelers (1300cc–1800cc)
2%
3.8%
3.8%
3.8%
3.8%
3.7%
18.9%
4-Wheelers (Above 1800cc)
3%
11.4%
11.3%
11.3%
11.2%
11.1%
56.2%
Buses and Trucks
1%
3.3%
3.3%
3.3%
3.3%
3.2%
16.3%
Projected Revenue Collection from FED (in Billion PKR)