ISLAMABAD: The Senate Standing Committee on Finance approved the Customs (Amendment) Bill, 2026, to give effect to the financial provisions of “Automotive Industry Development and Export Policy” (AIDEP) 2021-26.

The Committee discussed the money bill titled the Customs (Amendment) Act, 1969. The Committee was briefed on the proposed amendments clause by clause. It was informed that the purpose of these amendments is to give effect to the financial provisions of AIDEP 2021-26. Following detailed deliberations, the Committee unanimously recommended the Customs (Amendment) Act, 2026.

Federal Board of Revenue (FBR) Member Customs (Policy) Ashaad Jawwad informed the committee that the government has proposed an amendment to extend customs duty concessions on the import of electric vehicle (EV) parts and components until June 30, 2026, in a move aimed at promoting green transportation and encouraging local manufacturing of EVs in Pakistan.

He stated that the Federal Cabinet had initially approved the EV policy on June 16, 2020, granting concessional customs duty for five years from July 1, 2020, on imports of EV-specific parts for electric two- and three-wheelers, conditional import of new electric two- and three-wheelers in completely built-up (CBU) condition by manufacturers, and components for electric heavy commercial vehicles, including trucks, buses and prime movers.

The concessions were incorporated in Part-V(A) of the Fifth Schedule to the Customs Act, 1969, through the Finance Act, 2020.

Later, under the Automotive Industry Development and Export Policy (AIDEP) 2021-26, approved on December 21, 2021, the federal cabinet extended the existing concessions for electric two- and three-wheelers and electric heavy commercial vehicles until June 30, 2026. The policy also expanded concessions to imports of EV-specific parts for light commercial vehicles (LCVs) and vans on the same basis as other four-wheelers.

The proposed amendment seeks to align the concessions available under AIDEP 2021-26 with those listed in Part-V(A) of the Fifth Schedule to the Customs Act, 1969.

As a result of the Customs (Amendment) Bill, 2026, the government has extended customs duty concessions on the import of completely built electric vehicles (CBUs) until June 30, 2026, for up to 10 units of the same variant to be assembled or manufactured locally, with a maximum limit of 200 units for the 2-3 wheeler segments. The concession applies to vehicles approved and certified by the Engineering Development Board under the EV Policy 2020. The EDB will monitor compliance with the policy and will immediately inform the Federal Board of Revenue in case of any violation by manufacturers, after which further clearance at the concessional rate will be stopped.—SOHAIL SARFRAZ