• Difference in upfront cost of hybrid, petrol cars is around Rs4m
• Maintenance charges also make timeline to recover initial investment on hybrids longer

KARACHI: Despite lower taxes compared to gasoline vehicles, the adoption of hybrid electric vehicles (HEVs) in Pakistan has been slow, largely due to the higher up-front cost that prolongs the recovery period.

The general sales tax (GST) on hybrid electric vehicles (HEVs) is 8.5 per cent compared to 12.5 to 25pc on various categories of locally assembled fossil fuel vehicles.

The GST on fossil fuel vehicles below 850cc is 12.5pc, below 1,400cc, 18pc, and above 1,400cc, 25pc, according to Syed Asif Ahmed, the general manager of MG Pakistan.

On locally made HEVs and plug-in hybrid electric vehicles (PHEVs) below 1,800cc, the GST is 8.5pc, while the rate on 1,801 to 2,500cc is 12.75pc.

Yet, a hybrid compact SUV vehicle costs up to Rs 12 million, while similar variants of petrol cars cost Rs 8m, leaving a price difference of approximately Rs 4m.

Globally, hybrid vehicles deliver financial value........

© Dawn Business