Punjab Reduces EV Tax by 99% to Promote Green Transport

The Punjab government has announced a 99% exemption on motor vehicle tax for electric vehicles (EVs), reducing the annual tax to just 1% for most EV owners.

According to the Excise, Taxation and Narcotics Control Department, the tax relief came into effect on July 1, 2026, and will remain valid until June 30, 2027.

The exemption applies to all electric vehicles running on roads across Punjab, except those registered under the lump sum tax system.

The new policy will significantly reduce the annual tax burden on EV owners and encourage more people to switch to electric vehicles.

The Punjab government said the move is part of its plan to promote clean and environmentally friendly transport.

Officials added that rising fuel import costs and increasing air pollution in cities such as Lahore are among the main reasons for encouraging the use of electric vehicles.