ISLAMABAD: Federal Board of Revenue (FBR) had previously rejected the proposal to make 1300cc vehicles cheaper by reducing levies and taxes. However sources within the FBR said that the proposal can still be considered even after the budget.
The 1300cc vehicle is likely to be cheaper by Rs400,000 if the proposal is accepted. FBR taxes imposed in the budget are a major hurdle in making 1300cc vehicles cheaply available.
Earlier today, finance minister Shaukat Tarin chaired a meeting to review and finalize the new Auto-Policy. Federal Minister for Industries and Production Makhdum Khusro Bakhtyar, Adviser to PM on Commerce Abdul Razak Dawood and SAPM on Finance and Revenue Dr. Waqar Masood also participated in the meeting along with Senior Officials from Industries and Production, Commerce and FBR.
The Minister for Industries and Production briefed the meeting that the aim to introduce a new policy is to provide affordable small cars (850cc-1000cc), promote localization in domestically assembled cars, produce exportable surplus of auto-parts of 2-3 wheelers and increase the competition in the local market so that people in Pakistan could enjoy better technology at affordable prices. The Minister for Industries also discussed various concessions that could be offered to the Electric Vehicles (EV) to increase the number of vehicles imported and install the related infrastructure in Pakistan.
Other pending issues like the payment of ACD by the Auto-sector to the Government also came under discussion. The Industry representatives agreed to resolve the issue amicably for its final settlement.
The finance minister assured of his full support for the final launch of the New-Auto Policy.