Here is all you need to know about Pakistan’s new auto-policy to support newcomers and more affordable cars

A source has revealed that the government could significantly reduce car prices by slashing taxes and duties.

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The Engineering Development Board (EDP) and Ministry of Industries and Production are all set to work on the new Automotive Industry Development and Export Plan (AIDEP) 2021-26. The existing policy will expire in June this year.

According to details, the AIDEP 2021-26 will focus on expediting affordable cars’ manufacturing, which will lead to cost reduction, price stability, and employment creation in the country.

AIDEP 2021-26 is also supposed to significantly reduce customs duty and federal excise duty for the entire auto industry.

In return, the government will negotiate with carmakers to reduce car prices, increase localization, and collective efforts to increase exports.

It is pertinent to mention here that around 45% of the vehicle price that a buyer pays goes to the government in taxes and duties.

It includes 45% customs duty on importing localized parts while 30% on non-localized parts, and 7% additional customs duty to import all parts. Moreover, there is also up to 7.5% federal excise duty on different engine capacities and 17% sales tax on the sale of a car.

A source has revealed that the government could significantly reduce car prices by slashing taxes and duties.

For instance, if automakers are to bring a modern hatchback down to PKR 1 million from PKR 1.5 million, the government must reduce excessive duties and taxes, the source added.

What are your views on this? Share with us in the comments bar below.

  • Maachis ke teeli se le ker Car tak her aik cheaz per hum pakistani awaam tax dete hein, phir kehte hein k hamari qoum tax nahi deti..

  • kutti kay bachoo….. Imported cars per duty kam karo… local car manufecturing band hee ker doo. yeh zaleel nahee theek honay walay…


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