Latest bike model: ECC refuses to grant ‘new entrant’ status with incentives

ECC says policy should be applied to the entire industry instead of a specific model

ISLAMABAD: The Economic Coordination Committee (ECC) has turned down a proposal of the Ministry of Industries and Production that recommended giving the status of “new entrant” to a new motorcycle model of Atlas Honda.

In its summary prepared for the ECC, the Ministry of Industries, in a meeting on November 10, revealed that Atlas Honda had pressed for application of the new entrant policy with incentives to the motorcycle manufacturers bringing new technology.



The ministry said a committee, constituted by the ECC, reviewed the technological difference between the new model of Atlas Honda and the models already being assembled in the country.

It arrived at the consensus that keeping in view the technological difference, comments of members and technical input of the Engineering Development Board (EDB), the new model of Atlas Honda - Honda SDH CBF-150 - should be granted the new entrant status.



“This will promote innovation, give a wider choice to consumers and create employment opportunities in the country,” the committee said.

Consequently, the Ministry of Industries asked the ECC to declare the new model of Atlas Honda as a new technology and it be provided all incentives under the new entrant policy for the motorcycle manufacturing industry.

The ECC noted that it had already approved the new entrant policy, therefore, cases of new entrants should be dealt with in the light of that policy.

However, ECC Chairman Ishaq Dar did not agree with the policy proposal for a specific company, saying the Ministry of Industries should prepare policies that should be applicable to all concerned and were not focused on a single beneficiary.



The ECC directed that a committee should be constituted with industries and production secretary as the convener. The Federal Board of Revenue chairman and a representative of the Finance Division should be members of the committee that would review the new entrant policy and prepare a report for the ECC’s review.

The ECC had approved the new entrant policy for the motorcycle manufacturing industry introducing new technology in its meeting held on August 22, 2013.

It also decided that the Ministry of Industries would process cases of new entrants under the policy and make recommendations for approval of the ECC.

It was agreed that the EDB would define the new technology and the ECC would endorse it on recommendations of a committee comprising representatives of the Board of Investment, Ministry of Commerce and the industries secretary.

The EDB defined new technology as “a new application to an existing product in terms of technical features and specifications along with improved shape which can improve the existing product to enhance its performance, safety, shape and minimise emissions.”

Published in The Express Tribune, November 17^th, 2016.

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