Pakistani government announces new incentives for import of electric vehicles
According to the FBR, the electrical vehicle policy is included under the customs tariff.
Pakistani government announced ‘new incentives’ for the import of electric vehicles. Following the ‘Finance Bill 2020’, the government has made changes in ‘customs tariff’, along with a 1% decrease in ‘custom duties’ on these parts.
According to the FBR, the electrical vehicle policy is included under the customs tariff. FBR officials have said that ’11 new tariff lines have been established by the institution for electric vehicles.’
They further added that only 1% of import duty is applied to ‘Completely Knocked Down Units’ (CKD) for electric vehicles, in accordance with the new policy. On the other hand, the ‘import duty’ on non-localized parts will still be about 15%.
Official Documentation of the budget
According to the documents, the new incentives are applicable from July 1st, 2020, and would continue for the next five years.
Moreover, as under the First Schedule of the Customs Act, 1969, the three-wheeler electric loaders and electric motorcycles can now be imported at 50% of the current tariff.
The document read that at 1% of duty, the ‘Electrical buses, trucks and prime movers’ can now be imported.
Electrical Vehicle Policy
Electrical Vehicle (EV) policy had been approved by the Coordination Committee (ECC) for two, three-wheelers, and heavy commercial vehicles the previous month. EV policy was introduced for motorcycles and rickshaws. The authorities decided that introducing the policies for these vehicles is easier.
The officials have said that a significant amount of ‘pollution’ is caused by rickshaws, motorcycle rickshaws, and motorbikes, in the country.
The Ministry of Industries and Productions (MoIP) however, argued that this will discourage the ‘local manufacturers’.
The Ministry of Climate Change (MoCC) also opposed the idea of 1% duty on rickshaws and motorbikes during the meetings and said that this will lead to an increased import of E-rickshaws and E-bikes in the country, which is unnecessary.
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