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Auto Industry Policy of Pakistan and Tax Relief
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Govt reviews Auto Policy draft for the period from 2021 to 2026

The proposed Auto Industry Development and Export Policy (AIDEP) aims to increase the auto industry sector in Pakistan by increasing production of cars, motorcycles, tractors etc, Finance Minister Shaukat Tarin revealed.

Auto Industry Development and Export Policy AIDEP for the period from 2021 to 2026

He was attending a meeting to review the draft Auto Industry Development and Export Policy AIDEP for the period from 2021 to 2026. Shaukat Tarin said that the we intend to ensure consumer interest through provision of cars at economic rates especially for the middle and lower income class of the country.

Tax Relief in Budget for auto Sector

It is to remember here that the government has already provided major tax relief to the consumers by decreasing sales tax on 850cc cars along with exemption from value-added tax in the federal budget 2021-22. The Ministry of Industries and Production said that prices of vehicles have been reduced with reduction in taxes.

Salient features of Auto Policy

The salient features of the draft AIDEP 2021-26 includes to make Pakistan a hub for competitive manufacturing of auto parts and vehicles for local markets as well as for exports. Moreover, to provide high quality vehicles at reasonable and economical prices to the consumers in Pakistan. Government also aims to increase in export of automobile parts and vehicles to earn foreign exchange.

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The importance of electric vehicles (EVs) affirmed to provide incentives for developing the electric vehicle market in Pakistan including EV charging infrastructure. “The promotion of EVs will reduce dependence on oil import bill and promote environment friendly options.” Shaukat Tarin also emphasized to come up with provision of car financing at reduced mark-up to consumers so that all can afford a car.

Auto Policy Draft | Tax Relief auto Sector | Auto Prices in Pakistan | AIDEP 2021-26 | Finance Act 2021 | Vehicles in Pakistan | Cars In Pakistan | Taxes on Cars in Pakistan |

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