The government has approved an auto policy that will revolutionize the auto sector, and its instant implementation is crucial, stated the President of the Lahore Chamber of Commerce and Industry (LCCI), Mian Nauman Kabir.
As per the new auto policy, the import tax duty on electric vehicles (EVs) has been slashed from 25 percent to 10 percent and the sales tax percentage on local EVs has dropped from 17 percent to one percent.
In a bid to achieve the desired economic result, Kabir requested the government to ensure the swift and dedicated enactment of the Automotive Industry Development and Export Plan (AIDEP) 2021-26.
He also commended the government’s efforts to allow the introduction of modern technology in the automotive industry and the lowering of taxes in the AIDEP 2021-26.
“This will help firms introduce new technology with ease as electric vehicles are gaining rapid popularity throughout the globe,” he said, and added, “these are cost-effective and environment friendly”.
The LCCI President explained that this decrease in the sales tax on hybrid EVs and the reduction of regulatory duty on imported hybrid Completely Built-up Units (CBUs) will make them cost-effective for local consumers.
He believes that hybrid vehicle technology is well-established internationally, and will help the government achieve the objective of lowering emissions while conserving fuel. He also mentioned another great initiative, in which local car manufacturers will aim to export 10 percent of their production by 2026.
“It will not only encourage car manufacturers to boost their capacities but also earn much-needed foreign exchange for the national exchequer,” Kabir explained, and continued, “likewise, tax incentives for export of spare parts are encouraging for traders of the country.”
The Senior Vice President of the LCCI, Mian Rehman Aziz Chan, and its Vice President, Haris Ateeq, consider the implementation of this policy as vital as policy formulation. They said that the process of policy implementation is often overlooked, which leads to failure when it is introduced, and stressed that the government should prioritize the implementation of the AIDEP 2021-26 as well.