New Auto Policy Promises Tax Relief for Small Cars
Cars with engines of 1,000cc or less would face no additional taxes, while EV financing limits rise to Rs10 million, Adviser Haroon Akhtar Khan said
Pakistan’s new auto policy: no additional taxes on cars up to 1,000cc, higher EV financing limit of Rs10 million and 45 new safety standards.
The government’s new auto policy will bring tax relief for small cars, with cars of 1,000cc or less facing no additional taxes. Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan said the measure targets middle- and lower-middle-income buyers and follows the prime minister’s special instructions.
Electric Vehicles
The financing limit for electric vehicles (EVs) rises from Rs3 million to Rs10 million, and the repayment period is extended from three to five years.
Safety Standards
Pakistan will add 45 vehicle safety standards under the UN WP.29 framework, covering both locally made and imported vehicles.
Transparency Measures
Third-party audits will take place every six months. Manufacturers will not be allowed to collect booking payments above 20% of a vehicle’s price.
Aims of the Policy
The policy aims to ease costs for consumers, grow the domestic industry, increase exports and raise vehicle quality.
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