The federal government has reduced sales tax on locally manufactured hybrid electric vehicles, paving the way for a potential decline in their prices, reported 24NewsHD TV channel Monday.
According to a notification issued by the Ministry of Finance, the government has cut sales tax on locally manufactured hybrid electric vehicles by seven percentage points.
The sales tax on hybrid electric vehicles with engine capacity of up to 2,000cc has been reduced from 25 percent to 18 percent.
The tax reduction could lower the cost of eligible locally manufactured hybrid vehicles, though the extent of any price cut will depend on how manufacturers pass on the tax relief to consumers.
Reporter: Waqas Azeem