Punjab Slashes EV Registration Fees by 95%

In a bold move to address worsening air quality, the Punjab Excise Department has announced a 95% reduction in registration and token tax fees for electric vehicles (EVs), including electric bikes and rickshaws. The initiative is part of a wider provincial strategy to reduce transport-related pollution and accelerate the adoption of environmentally friendly mobility.
Under the new policy, owners of electric vehicles will pay only 5% of the standard registration and token fees, a step officials hope will make EVs significantly more attractive compared to traditional petrol and diesel-powered vehicles.
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Additional Director General Excise & Taxation Punjab, Ahmed Saeed, told reporters that the policy aims to steer both consumers and manufacturers toward clean transportation. “This discount is not just financial relief—it’s a push toward sustainable urban living,” he said.
The move comes amid rising concerns over air pollution levels in major cities like Lahore, where vehicle emissions are a leading contributor. According to the Environment Department, nearly 80% of pollution in Pakistan originates from the transport sector, with internal combustion engines alone accounting for 38% of urban air contamination in Lahore.
Environmental experts have lauded the decision as a forward-looking and climate-conscious step. They argue that incentivizing EV adoption is critical to achieving long-term emission reductions and improving public health.
So far, official records from the Excise Department show growing interest in EVs across Punjab. To date, 14,357 electric scooters, 1,461 electric cars, and 36 electric rickshaws have been registered in the province.
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