Pakistan’s Auto Policy 2021-26: prices of vehicles reduced

Prices of vehicles has been reduced. As per the new policy, the prices of vehicles up to 850cc will be reduced up to Rs 105,000 and 1000cc cars prices will be decreased up to Rs 146,000.

KARACHI: The federal government has finally announced Pakistan’s new 5-year Auto Policy 2021-26 and it also brings good news for the lower-middle class and middle class car lovers.

According to the auto policy, the prices of vehicles has been reduced. As per the new policy, the prices of vehicles up to 850cc will be reduced up to Rs 105,000 and 1000cc cars prices will be decreased up to Rs 146,000. Moreover, above 1000cc Toyota Yaris and Honda City, the prices will be decreased up to Rs 125,000.

Another great highlight of the new Auto Policy 2021-26 is the announcement of jobs in the automobile sector. According to the policy, the auto sector will produce 3,75,000 jobs in the country. This is indeed a great step by the government. In Pakistan, jobs in the automobile sector are often quite limited.

The arrival of new automakers in the country has opened doors to several possibilities. It is yet to be revealed what kind of jobs will be offered in the auto industry.

Another important point to bring to your attention is the massive decrease in the import duty of EVs in the country. As per the Auto Policy 2021-26, the import duty on electric vehicles will be reduced from 25 per cent to 10 per cent for one year.

New Car Prices will be implemented in the next 1-2 days.

To end ‘ON Money’ culture, the buyer has to register the car in his/her name.

Auto Sector will produce 3,75,000 new jobs.

Auto Sector has the capacity to produce 4,15,000 cars annually. Last year, Pakistan produced 1,64,000 vehicles.

Prices of cars up to 850cc will reduce up to Rs,105,000.

Rates of 1000cc will decrease up to Rs1,46,000.

Prices of Toyota Yaris, Honda City up to Rs1,25,000.

Import duty on Electric Vehicles (EVs) will be reduced to 10% from 25% for one year.

If the car manufacturer delay the car for over 60 days (2 months), the company will pay KIBOR + 3%.

Auto Industry pays Rs 350 billion in taxes.

Govt is developing an Auto development and Export policy. The policy will not only focus on the domestic market.

Decision to review tax exemption on imported vehicles every year.

Decision to set export target for vehicles under new auto policy 2021-26.

Car manufacturers to set 10% export target by 2026.

Car makers set 2% target for next year.

Car makers set 4% vehicle export target in 2024.

Car manufacturers set target of 7% vehicle exports in 2025.

Decision to take measures to increase exports of automobiles and spare parts.

Decide to give the Ministry of Commerce the responsibility of negotiating with foreign countries.

Decision on tax incentives for exports of vehicles and spare parts.

Decision to make concessions for electric vehicles under auto policy.

Decision to increase sales tax on locally manufactured electric vehicles from 17% to 1%.

Decision to increase customs duty on spare parts for electric vehicles to 1%.

Customs duty on CBU imports of electric vehicles will be reduced from 25 to 10 percent.

One per cent customs duty will be levied on electric parts of motorcycles.

Decides to reduce sales tax on hybrid electric vehicles to 8.5%.

Regulatory duty on import of hybrid CBU will be reduced.

Regulatory duty on hybrid vehicles above 1800 cc will be reduced by 15%.

Decision to reduce regulatory duty on hybrid vehicles below 1800 cc.

Strict decisions to ensure safety measures under auto policy.

Decision to ban import of vehicles for non-compliance with safety standards.

It also decided to ban the manufacture of local vehicles for non-compliance with safety standards.

After June 30, 2022, there will be restrictions on non-compliance with safety standards.

About The Author