Massive Decline in Sales Tax for Electric Cars | New Auto Policy of Pakistan

Sales Tax for Electric Cars: The aim of the new auto policy is to promote localization of the automobile industry in Pakistan and to bring it to the export level, make the small cars affordable for the common citizen of the country, and bring innovation and modernity in the automobile industry like hybrid and Electric vehicles and take measures to ensure consumer safety like airbags and the material used in the car manufacturing industry.

The new auto policy has been announced by Govt to meet the above-given objectives.

This new auto policy is made for the next five years from 2001 to 2006.

In order to promote Electric Vehicles sales tax has been reduced from 17 to just 1%.

To encourage Ev imports the custom duty has also been reduced to 10% from 25%.

Govt has also reduced sales tax on the hybrid cards and it has been reduced to 8.5%.

The Govt of Pakistan has also decided to reduce the regulatory duty on CBU import of hybrids (15% for above 1,800cc, 0% for 1,800cc and below.

As per the new auto policy, the Govt will not allow the imports of vehicle which do not meet the quality and safety standards in order to safeguard the safety and security of the final consumers.

“No vehicle shall be locally manufactured/imported after June 30, 2022, which is not compliant of shortlisted WP 29 regulations” the statement in the draft.

 

 

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