Tax relief placed on the auto sector is expected to be improved for vehicles up to 1000cc in the Finance Bill 2021, to support affordable cars and localization in the nation.
In a conference directed by Federal Minister for Finance and Revenue Shaukat Tarin on Friday, Makhdum Khusro Bakhtyar, the Federal Minister for Industries and Production, presented a comprehensive briefing on the latest auto policy. The auto policy analysis and finalization agreement were accompanied by Commerce Adviser Abdul Razak Dawood and SAPM on Finance and Revenue Dr. Waqar Masood.
The Finance Bill exhibited in the National Assembly proposed tax measures for cars up to 850cc following the Customs Revenue Measures and proposed exclusion of Additional Customs Duty (ACD) and Regulatory Duties (RD). It also suggested the decrease of Customs Duty (CD) from 30 percent to 15pc. For Complete Built-Up Unit (CBU), it was suggested to decrease CD from 25pc to 10pc while for regional production from 12.5 percent to 5 percent.
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“Currently only a limited number of vehicles are below the 850cc category and if the range is enhanced to 1,000cc many auto companies already present in Pakistan would be able to launch small car models in the country,” the official said.
Moreover, Minister Bakhtyar also highlighted that the latest auto policy will indicate the localization of locally assembled cars to decrease the costs of the vehicles. He continued that one of the aims of the new auto plan is to create an overabundance of parts for the two and three-wheeler sections to support the export of vehicles and to guarantee the growth of the business.
The conference also addressed the matter of non-payment of ACDs by the auto sector. Federal Board of Revenue (FBR) executives proposed the way forward to the finance minister concerning the recovery of the pending amount. It was concluded that the matter required to be settled amicably for a final agreement between the FBR and the auto industry.
Source: Pro Pakistani
