Proposals for reduction in custom duty on vehicles submitted in NA’s committee

The National Assembly’s Standing Committee on Finance is considering a new 5-year auto policy, and in this regard, proposals for a significant reduction in customs duty on vehicles of different categories have been submitted, reported the 24NewsHD TV channel on Sunday. 

In the meeting, Minister of State for Finance Bilal Kayani said that the current auto policy is ending on June 30, while according to the Commerce Secretary, under the new policy, it is proposed to bring the total duties on 1800 cc vehicles to 74 percent. 

The briefing was informed that a reduction in customs duty has been proposed in various engine categories, under which the duty on 850 cc vehicles and motorcycles is proposed to be reduced from 50 to 30 percent, from 60 to 40 percent on 1000 to 1500 cc, and from 75 to 45 percent on 1500 to 1800 cc vehicles.

The meeting discussed important issues related to tax policy and charging infrastructure on electric vehicles. 

FBR officials briefed the meeting and said that Federal Excise Duty (FED) is not applicable to electric vehicles worth up to $75,000, while electric vehicles worth less than Rs20 million are not subject to federal excise duty. 

However, this tax will be applicable on electric vehicles worth more than Rs20 million.

During the meeting, the committee members raised questions on the status of electric charging stations. 

Committee member Shahida Akhtar Ali said that until charging stations are not available, how will electric vehicles operate, and a clear policy is needed in this regard. 

She also called the current electricity situation in the country an important factor in policymaking.

The meeting agreed to continue further deliberations on the policy, tax structure and lack of infrastructure for electric vehicles.

Reporter: Waqas Azeem