FBR Issues SRO 1081(I)/2026 – Additional Electric Vehicles and Parts Added to Tax Exemption List
The Federal Board of Revenue (FBR) has issued SRO 1081(I)/2026 dated 06 July 2026, introducing amendments to the Income Tax (Exemption) Order, 2001. The notification updates the list of eligible items enjoying tax exemptions by adding additional categories related to electric vehicles (EVs) and their components.
The amendment reflects Pakistan’s continued efforts to promote clean energy, encourage electric mobility, and support investment in environmentally friendly transportation solutions.
Background
The Government of Pakistan has been introducing various policy measures to encourage the adoption of Electric Vehicles (EVs) as part of its commitment towards sustainable development and reduction of carbon emissions.
Through this latest notification, FBR has amended the existing exemption framework to provide further clarity and support for electric vehicle manufacturers, suppliers, and consumers.
The amendment has been made under the powers available through relevant provisions of the Income Tax Ordinance, 2001 and related tax laws.
Key Amendments Introduced Through SRO 1081(I)/2026
Under the latest amendment, additional entries have been included in the exemption schedule covering:
Electric or Battery Operated Vehicles
The exemption scope now includes various categories of electric mobility solutions, such as:
- Electric or battery-operated motor cars
- Electric or battery-operated buses and trucks
- Electric or battery-operated rickshaws and loaders
- Other eligible electric vehicles
Parts and Accessories for Electric Vehicles
The notification also extends coverage to:
- Components used in electric vehicles
- Related parts and accessories required for EV manufacturing and operations
These additions aim to strengthen the local EV ecosystem and encourage businesses involved in electric vehicle technology.
Impact on Businesses and Consumers
The amendments introduced through SRO 1081(I)/2026 are expected to benefit multiple stakeholders:
Automotive Industry
EV manufacturers and assemblers may benefit from improved tax treatment, encouraging further investment in Pakistan’s electric vehicle sector.
Importers and Suppliers
Businesses dealing in eligible EV products and components may receive relief through the updated exemption provisions.
Consumers
Greater support for electric mobility could contribute towards improved affordability and wider adoption of electric vehicles in Pakistan.
Environmental Benefits
The initiative aligns with Pakistan’s objective of promoting cleaner transportation and reducing dependency on conventional fuel-based vehicles.
Importance for Tax Professionals
Practicing accountants, tax consultants, and businesses should carefully review the updated exemption entries introduced by SRO 1081(I)/2026 to understand:
- Eligibility criteria
- Applicable tax treatment
- Compliance requirements
- Impact on business transactions
Proper interpretation of the notification is essential to ensure accurate tax planning and reporting.
Conclusion
The issuance of SRO 1081(I)/2026 represents another step towards supporting Pakistan’s transition to green transportation and sustainable technology.
By expanding tax exemptions for electric vehicles and related components, the Government aims to create a more supportive environment for EV adoption, investment, and innovation.
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