Govt plans carbon tax on large vehicles under new auto policy

  • Proposed five-year auto policy aims to promote environmentally friendly vehicles.
  • Carbon levy suggested for large vehicles with higher emissions.
  • Policy focuses on increasing local vehicle production and boosting exports.

The government has proposed a carbon levy on large vehicles as part of a new five-year automobile policy aimed at promoting environmentally friendly transportation and strengthening Pakistan’s automotive industry.

According to the proposed policy, the carbon levy would apply to larger vehicles with higher carbon emissions as part of efforts to encourage the use and production of cleaner, fuel-efficient vehicles.

The draft policy also seeks to increase local manufacturing by promoting the production of eco-friendly vehicles, reducing reliance on imports and expanding the domestic auto industry.

In addition, the government aims to boost vehicle exports by improving manufacturing standards, attracting investment and enhancing the competitiveness of Pakistan’s automotive sector in international markets.

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