The Punjab government has exempted electric vehicles from 99 percent of motor vehicle tax across the province, cutting the annual levy to just 1 percent for most EV owners.
The Excise, Taxation and Narcotics Control Department notified the exemption under Section 13(1) of the Punjab Motor Vehicles Taxation Act, effective July 1, 2026, and valid until June 30, 2027.
The relief applies to all electric vehicles operating on the roads of Punjab, with the exception of those registered under the lump sum tax category.
The notification marks a significant reduction in the financial burden on EV owners, bringing their annual tax liability down to a nominal fraction of the standard rate.
The decision forms part of the wider strategy of the province of Punjab to accelerate the adoption of electric vehicles.
Officials cite rising fuel import costs and worsening air quality in major cities, including Lahore, as key factors driving the push of the province toward cleaner transport alternatives.
