KARACHI: The government is all set to announce ‘National Auto Policy 2016’ after removing reservations of the Federal Board of Revenue (FBR) on tax regime and other matters, sources in the Ministry for Industries and Production said on Wednesday.
According to the SRO 693, locally manufactured auto components are included in this SRO and they attract higher duty than non-localized parts. But this has created dual problems in implementation and is parallel to Customs General Order (CGO), containing all locally manufactured engineering goods except auto.
As 35 percent is the duty rate of commercial import of auto parts and the parts that would be localized by the end 2016 would become part of the CGO with the same duty.
The FBR is trying its best to cooperate with the government in order to implement the next Nation Auto Policy and is contemplating sector-friendly result.
Usually, the government finalises auto policy for a period of three years but delay is said to be due to idleness of the Economic Coordination Committee.
The new auto policy has proposed incentives for new entrants, revival of assembly plants that have been shut down and expanding existing facilities.
Under used vehicle import policy 2014-2019, import of all types of vehicles shall be regulated, only used vehicle could be imported through personal baggage scheme.
The stakeholders of the sector including assemblers and importers are eyeing on the FBR for a trust-worthy outcome on new auto policy tax regime.
Pakistan car sales shows a healthy growth in last few months of 2015 as sales increased by 67 percent year on year (36 percent MoM) to 20,479 units in the month of August.
