The Ministry of Industries has revealed that the cars that are 1000cc or below in Pakistan are not fuel efficient; this pertains to usage of old-age technology in the country. According to the documents of MoI, higher cc vehicles produced in the country are more fuel efficient but rebuffed the same perception in case of 1000cc cars or below.
Ministry holds the viewpoint that cars of 1000cc or below have low fuel efficiency because of non-upgraded technology. The mechanics of such cars have been the same for many years; there have been some upgrades over the past years; however, they have nothing to do with fuel efficiency.
The government has announced the new Auto policy pertaining to which, two new investors categories are now allowed with new incentives under this new policy. It is pertinent to mention that government has not imposed a restriction on the import of new vehicles in this much awaited new Auto Policy.
It is pertinent to mention that the government has not imposed a restriction on new vehicle import in this much awaited new Auto Policy.
|Greenfield Investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of the vehicle -the make should be the one not already being assembled/manufactured in Pakistan. (Note: “Make” is defined as any vehicle of whatever variant produced by the same manufacturer)|
|(a) Duty-free import of plant and machinery for setting up the assembly and/or manufacturing facility on a one-time basis;|
|(b) Import of 100 vehicles of the same variant in CBU form at 50 percent of the prevailing duty for test marketing after the project’s groundbreaking.|
|(c) Concessional rate of customs duty @ 10 percent on non-localized parts and @ 25 percent on localized parts for a five years period for the manufacturing of Cars and LCVs;|
|(d) Import of all parts (both localized and non-localized) at prevailing customs duty applicable to non-localized parts for manufacturing of trucks, buses and prime movers for a period of three years.|
|Brownfield Investment is defined as the revival of existing assemblies and/or manufacturing facilities, that are non-operational or closed on or before July 01, 201; the make is not in production in Pakistan since that date and that the revival is undertaken either independently by original owners or new investors or under joint venture agreement with foreign principal or by foreign principal independently through purchase of plant.|
|(a) Import of non-localized parts at 10 percent rate of customs duty and localized parts at 25 percent duty for a period of three years for the manufacturing of Cars and LCVs;|
|(b) Import of all parts (both localized and non-localized) at prevailing customs duty, applicable to non-localized parts for manufacturing of trucks, buses and prime movers for a period of three years.|
Stay tuned to Brandsynario for more updates.