Pakistan,s new auto policy approved

By -

 PAKISTAN,S NEW AUTO POLICY APPROVED 

Hello guys , the long awaited auto policy of Pakistan finally has been approved , this new auto policy is highly in favor of the new entrants that wanna establish their footprints in Pakistan . The new auto policy is going to offer high amount of tax reductions for the new entrants that want to enter the Pakistani market. 

The incentives for new entrants 

  1. Tax free establishment of one assembly line .
  2. Import of 100 vehicles of each variant in the form of CBU ( COMPLETELY BUILT UNITS) at 50% of the current import duty which will give an immense boost to the new automakers in the form of reduced prices which will ultimately attract potential buyers along with this will allow the new entrants to observe the market demands.
  3. Another big incentive is the reduction of duty on imported parts , this duty is different for the existing players ( 30% ) and for the new entrants ( 10% ) , the current duty was 32 %.
  4. Where as on the localized parts the taxes will be as follows                                                             Existing players = 45 %  ( only 5 % reduction for existing players )                                             New players       = 25 %
  5. In case of CBU category there is 10 % reduction on duty which might help in the reduction of prices of existing car manufacturers but only in the case of cars that are not made in Pakistan which means that it won,t help in any reduction of prices of hot selling cars because most of them are locally manufactured .
  6. After 5 years the duty on the localized and non localized parts will be the same. however the current auto policy tax scheme will remain there for 7 years for new entrants and thats where the new entrants get most benefited .

     COMPANIES INTERESTED TO ENTER IN PAKISTANI MARKET ARE 

  • EUROPEANS : AUDI , VOLKSWAGEN , RENAULT
  • ASIAN  :   CHANGAN , GEELY , NISSAN , ZOTYE 

Comments

Post a Comment