Pakistan New Auto policy: In a Press conference by Federal Govt Ministers, Fawad Chaudhary and Khusru Bakhtyar revealed the new auto policy 2021.
The focus of the new auto policy is to create competition in a local auto market that will help increase the quality of the cars and safety measures and reduce the car prices.
In order to create new cars demand, tax relief is provided on all capacity engine cars.
Govt has cut FED up to 3000 capacity engine cars by 2.5% whereas FED has been abolished completely on cars up to 1000 CC.
Govt also reduced the sale tax from 17% to 12.5%.
Govt also reduced Additional custom duty from 7% to 2%.
Due to these tax reductions, the general public will get some sort of relief in car prices.
other measures to produce demand in the automobile sector, Govt has fixed the upfront for car leasing at 20% of the total value of the car.
Due to these tax reductions, cars up to 660CC engine capacity price will be reduced up to Rs104000 and for engine capacity, 1000 prices would be reduced up to Rs.154000.
Govt’s new auto policy aims to create employment in the country by creating automobile demands. Increasing the number of buyers in the market will certainly result in an increase in demand.
When car prices will be reduced more and more people will be able to buy cars and making car leasing more easy and affordable will also impact positively on car demand.
Minister inform the new car prices will be announced by car manufacturing companies in days but car making companies are delaying it. The car-making companies may absorb this reduction and may adjust this reduction in taxes in their car prices by increasing their own profit. If it happens then the final consumer will have no benefits from these Govt measures to reduce taxes on cars.
Car Manufacturing companies will have to pay penalties for the late delivery of the cars. If someone books the car and doesn’t get the car within 60 days then car-making companies will have to pay a fine which will go into the pockets of the car-booking person.
The penalty will be Kibor+3% for car-making companies for late delivery of the cars.
Further to this, the person who booked the car will be able to see the stage of his car manufacturing.
The person who books the car will have to register the car in his own name otherwise he will have to pay a fine. Rs 50000 for cars up to 1000 CC, Rs100,000 for cars up to 2000CC and for above 2000CC fine would be Rs200,000.
this measure has been taken by Govt to discourage own money.