Duty cuts to boost EV adoption

The government plans to extend tax incentives for electric buses and trucks until June 30, 2030 in the proposed budget for fiscal year 2026-27. 

The move is aimed at reducing pollution and improving energy security.

It also proposes lowering taxes on imported electric vehicles (EVs). For vehicles priced up to $25,000, the total tax burden will drop to 64 percent from 93 percent. For EVs priced up to $50,000, it will come down to 80 percent.

For plug-in hybrid electric vehicles (PHEVs), supplementary duties will be reduced. The regulatory duty on imported vehicles with engine capacities up to 1,800cc will also be removed. As a result, the total tax burden on PHEVs up to 1,800cc will fall to 73.44 percent from 93.16 percent. For those up to 2,000cc, it will decrease to 96.10 percent from 132.36 percent.

To support EV infrastructure, all customs duties and taxes on imported EV chargers and charging stations will be removed.

Meanwhile, taxes on imported fossil fuel-powered vehicles with engine capacities between 1,200cc and 1,600cc will rise to 155.88 percent from 132.36 percent.