The tax reliefs offered on vehicles up to 850cc and Electric Vehicles (EVs) are a ray of hope for car buyers. However, the government is now planning to offer relief for vehicles with an engine capacity of up to 1000cc.
This step is under consideration as the government seeks to encourage the sales and purchase of affordable and more environment-friendly vehicles in Pakistan.
A meeting for the review and finalization of the new auto policy had been called by the Federal Minister for Finance and Revenue, Shaukat Tarin, on 18 June, in which the Federal Minister for Industries and Production, Makhdum Khusro Bakhtyar, thoroughly briefed the participants about the new auto policy.
The meeting was attended by the Adviser on Commerce, Abdul Razak Dawood, and the Special Assistant to the Prime Minister (SAPM) on Finance and Revenue, Dr. Waqar Masood.
During the meeting, Minister Bakhtyar stated that tax concessions will also be provided on the manufacturing, sales, and purchase of vehicles that are between 850cc and 1000cc.
This concession was brought under consideration by the concerned departments after the Ministry of Industries and Production pointed out that the number of locally manufactured cars in Pakistan with an engine capacity of 850cc and below is small, which is why the government needs to include 1000cc cars in the relief policy as well.
Minister Bakhtyar also highlighted that the new auto policy will lay emphasis on the localization of domestically assembled vehicles in order to reduce the prices of the vehicles. He added that one of the goals of the new auto policy is to produce a surplus of parts for the two and three-wheeler segments to allow the export of vehicles and to ensure the growth of the industry.