The Government has tightened customs duty concessions on electric and CNG vehicles, limiting who benefits and by how much, under an amendment taking effect from January 1, 2026.
The Customs (Remittance of Customs Duty) (Amendment) Order, 2025 amends a 2024 order and introduces clear value and engine-size caps on vehicles eligible for duty relief.
For private electric vehicles, both new and used, the order now restricts concessions to vehicles with a C.I.F. value not exceeding $400,000. Imports above this threshold no longer qualify for the same treatment and fall outside the remittance framework set out in the amended order.
Where the concession applies, importers of qualifying private electric vehicles receive a remittance of ten per cent of the customs duty payable, rather than broader relief. The amendment also clarifies the calculation method, specifying ten per cent of the customs duty itself, not ten per cent of the overall sum payable.
The order also introduces a new, more generous regime for certain compressed natural gas (CNG) vehicles imported for commercial use.
All customs duty is remitted on new CNG vehicles with engine sizes not exceeding 1,599 cc, once imported for commercial purposes. The same full remittance applies to used CNG vehicles within the same engine limit, provided they are no more than eight years old.
By contrast, private electric vehicles with a C.I.F. value exceeding $400,000 are expressly listed outside the remittance categories—both for motor cars and electric motorcycles—signalling a policy shift away from duty relief for higher-end electric imports.
The amendments were made by the President under the Customs Act and were dated December 22, but published on December 25,2025.
