The Sindh government has extended tax and registration incentives for electric vehicles (EVs) by two years.

The decision was taken at a Sindh cabinet meeting chaired by Chief Minister Syed Murad Ali Shah at the Chief Minister House. The provincial government approved measures concerning tax and registration concessions for non-commercial EVs.

Under the decision, the incentives will remain in place from May 30th, 2026, to May 29th, 2028. The cabinet also approved a proposal from the Excise, Taxation and Narcotics Control Department concerning electric vehicles. The registration fee for EVs will remain fixed at PKR 1,000 (US$ 3.6), while the annual motor vehicle tax for non-commercial EVs will remain at PKR 500.

For electric two-wheelers, a one-time lifetime motor vehicle tax of PKR 500 will apply.

The cabinet further decided that electric vehicles with an engine capacity of 2,000cc or above, or an equivalent capacity, will be subject to a luxury tax of PKR 5,000. A late registration penalty of PKR 1,000 has also been fixed for EVs.

Chief Minister Murad Ali Shah said the increased use of electric vehicles could reduce dependence on imported fuel, carbon emissions and urban air pollution. He said EV adoption forms part of the Sindh government's strategy and that the continued tax concessions would support EV uptake and investment in the electric mobility sector.

He also said wider use of EVs could improve air quality in cities by reducing carbon emissions. Under the cabinet's decision, the tax and registration incentives for electric vehicles will remain in effect until May 29th, 2028.