The federal cabinet has approved a new auto policy, proposing to abolish additional customs duties on small vehicles.
According to sources, under the new auto policy, tax exemption is proposed on small vehicles, tax exemption is proposed on vehicles up to 850 cc. Sources said that it is proposed to abolish excise duty on locally manufactured vehicles and also to abolish holding tax on small vehicles.
According to sources, the tax exemption is also proposed to be applied on small imported vehicles. It is proposed to review the tax exemption on imported vehicles every year.
Sources said that under the new auto policy, it is proposed to set an export target for vehicles, giving 10 per cent export target to car manufacturers by 2026.
The target for car manufacturers is to export 2% of vehicles next year, the target is to export 4% of vehicles in 2024, while the target for carmakers is to export 7% of vehicles in 2025.
According to sources, measures are proposed to increase exports of vehicles and spare parts, tax incentives are proposed for exports of vehicles and spare parts.
The sources further said that the Ministry of Commerce is proposed to be given the responsibility of negotiating with foreign countries.