The federal government has started working on a new five-year auto policy which will aim at denting the monopoly of the local manufacturers, reported 24NewsHD TV channel on Saturday. 

Sources say the policy proposes cutting down duties and taxes on imported cars by 30 percent.  

Similarly, it proposes a substantial reduction in the prices of locally assembled small cars so that these could be brought within the reach of the people belonging to the middle class.  

Likewise, a cut in taxes on the import of complete built up (CBU) cars has been recommended. 

Sources add the policy recommends eliminating the monopoly of local car manufacturers so that a sense of competition could develop between the local and international car manufacturers.   

Electric Vehicles Policy will also be the part of the new auto policy, the sources explain.