Govt reduces sales tax on locally produced electric cars
Business
Sales tax on locally produced electric cars to reduce from 17% to 1%.
LAHORE (Dunya News) - The Government of Pakistan on Wednesday decided to slash sales tax on locally produced electric cars from 17% to 1% under the new 5-year Auto Policy.
According to the details, the government decided to bring down custom duty on spare parts of electric cars to 1%. While the custom duty on complete built-up unit (CBU) of the electric cars will be reduced from 25% to 10%.
The regulatory duty on the import of hybrid CBU would also be reduced while the custom duty on the electric spare parts of motorcycles would be 1% under the new Auto Policy.
Furthermore, the regulatory duty on hybrid cars above than 1800cc would be reduced by 15% while the ones less than 1800cc would have no regulatory duty.
Under the new Auto Policy, a decision was also made to ensure safety standards in the cars. The import of vehicles that don t meet safety standards would be banned. In addition, a ban would be imposed on the local manufacturing of cars not meeting safety standards.
