New Auto Policy to Cut Vehicle Prices Except Luxury Cars
Adviser to the PM Haroon Akhtar Khan said the policy focuses on local production, a $6 billion export target and tax relief for electric vehicles.
Adviser Haroon Akhtar says vehicle prices will fall under the new auto policy, with a $6 billion export target and tax relief for EVs.
Prime Minister’s Adviser on Industries and Production Haroon Akhtar Khan has said prices of all vehicles except luxury cars will fall under the new auto policy. He made the announcement at a news conference with Federal Information Minister Attaullah Tarar. The policy is awaiting approval from the International Monetary Fund (IMF).
Focus on Production and Exports
The policy focuses on local production and exports, with a five-year export target of $6 billion. Manufacturers will get a reward of 5% of export value in the first year, while those that miss export targets will face fines. The policy is also expected to create export opportunities for local auto-parts makers.
Safety and Electric Vehicles
The policy adds 45 safety standards and places emphasis on electric vehicles (EVs). The proposed sales tax rates are:
EVs: 1%
Extended-range EVs: 6%
Plug-in hybrids: 9%
Machinery for EV charging stations: 1%, with zero customs duty
Affordable Transport
Information Minister Attaullah Tarar said the government aims to make transport more affordable for ordinary people. He said the growing use of electric motorcycles and scooters, including among women, would reduce the import bill and pollution. The policy offers tax concessions for EVs.
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