According to the Federal Board of Revenue’s Classification of Hybrid Vehicles Committee, vehicles without electric motors do not qualify as hybrid vehicles. It has been decided that mild hybrid vehicles will be subject to a 50% customs duty in order to prevent tax benefits.
Vehicles with electric power sources for non-propulsion functions, such as integrated alternators/starters, are not considered HEVs according to the committee. It is referred to as a micro-hybrid vehicle since it lacks an electric motor for propulsion.
In these vehicles, hybrid technology features, such as stop-start systems and charge management systems, are utilized. Despite this, their functionality differs from that of true hybrid vehicles due to the absence of an electric motor.
Therefore, these vehicles fall under the Pakistan Customs Tariff (PCT) heading 8703.2119.
Recently, a complainant imported used Nissan Dayz Hybrid, Suzuki Wagon-R Hybrid, and Suzuki Hustler Hybrid cars, seeking concessionary duty and tax rates under SRO 499(1)/2013. Despite this, the Collectorate of Customs, Appraisement-West, Karachi, in a circular dated 05.10.2018, denied the claim and classified the vehicles as mild hybrids.
