The government has approved an excellent policy for the automobile sector which is expected to steer a revolution in the segment but at the same time, its swift implementation is of utmost importance, said Lahore Chamber of Commerce and Industry President Mian Nauman Kabir.
In a statement on Thursday, he urged the government to ensure smooth implementation of the Automotive Industry Development and Export Plan (AIDEP) 2021-26 in letter and spirit to achieve the desired economic results.
He further appreciated the government for relaxing taxes in the Automotive Industry Development and Export Plan 2021-26 and allowing new technology to enter the automobile industry.
According to the new automobile policy, import duty on electric vehicles has been reduced to 10% from 25% while sales tax on local electric vehicles has been slashed from 17% to 1%.
“This will help firms introduce new technology with ease as electric vehicles are gaining rapid popularity throughout the globe,” he said. “They are cost effective and environment friendly.”
He said that reduction in sales tax on hybrid electric vehicles and drop in regulatory duty on the import of hybrid completely built-up units (CBUs) will decrease their cost and turn them economical for the consumers.
“The technology for hybrid vehicles is well established globally and it can help achieve government’s objectives of slashing emissions while conserving fuel,” he added.
The LCCI president further said that car manufacturers would aim to export 10% of their output by 2026 which was a good initiative.
“It will not only encourage car manufacturers to boost their capacities but also earn much-needed foreign exchange for the national exchequer,” he said. “Likewise, tax incentives for export of spare parts are encouraging for traders of the country.”
LCCI Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq termed policy implementation as important as policy formulation.
The policy implementation process is often overlooked when it is introduced and leads to its failure, they said.
“Therefore, implementation of AIDEP 2021-26 should also be focused by the government,” they said.
Published in The Express Tribune, December 31st, 2021.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
1729662874-0/One-Direction-(1)1729662874-0-165x106.webp "article")
1732084432-0/Untitled-design-(63)1732084432-0-270x192.webp "azerbaijan plans 3b investment")
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ