A couple of weeks ago, Prime Minister Spokesperson Shahbaz Gill tweeted that the PM Imran Khan is going to sign the new Auto Policy (2021-2026). However, there was no update after that from the government. But now, we are here with an update on it. According to our sources, the new Auto Policy is going to be announced within days. “The government will most probably announce the policy within this week,” the sources claimed.
Is it a Good Auto Policy?
Our sources have given the answer of this question in YES! as they believe that there are many new incentives for the auto industry. As we told you earlier, reportedly there will be a 2.5% Federal Excise Duty (FED) reduction on all cars. It is pertinent to mention that this reduction has already been offered on cars under 850cc in the annual budget. And now it will be applied across the board.
Furthermore, the sources told us that the government is going to offer benefits for hybrid cars. “The Additional Customs Duty (ACD) on CKD kits will also reduce from 7% to 3%,” the sources further claimed. Reportedly, the car manufacturing companies are very happy with this new policy as government has accepted most of their demands. So, it means that the prices are expected to come down.
If the reports are true, then it indeed is a great news. However, the car companies must transfer these benefits to the consumers, and sell the cars at lower prices. In last couple of years, the prices of almost all cars have increased repeatedly, taking them out of buyers’ reach.
We sincerely hope that our sources are right and there will be a lot of good news for the companies and consumers, alike. So, What are your expectations from the new Auto Policy? You think the cars will get cheaper? Shar your thoughts in comments section.
Facilitating car buyers to switch to hybrids is a wise decision, great work government team, I hope more such practical actions are going to follow.
If for all cars categories there is a taxes reduction it is already a good step even 2.5% reduction, sound promising.
I will do math for all car to see if the prices reduction follow the rules.
Doing something for hybrids cars is better than EV is wiser. Toyota corolla cross, Hyundai Ioniq and Toyota camry, Toyota Prius may see price reduction, Also i beleive Mercedes GLE is available as Hybrid in Pakistan, also Porsche Cayenne.
Sound promising the new auto policy.