Prime Minister Imran Khan has praised Toyota Indus Motors Company for launching the plan to assemble hybrid cars locally. Yesterday, the company announced that it will invest $100million in Pakistan for this purpose.
The premier lauded the company during a meeting in Islamabad today. The meeting was attended by Toyota Vice Chairman Shinji Yanagi and CEO Ali Asghar Jamali. Furthermore, Finance Minister Shaukat Tarin, Minister for Industries and Production Khusro Bakhtiyar, Energy Minister Hammad Azhar and relevant officers were also present in the meeting.
As per PM Office, the prime minister praised IMC for taking steps to tackle climate change as well as creating new job opportunities in Pakistan. Khan directed the concerned authorities to increase Pakistan’s role in international auto expert market. He also lauded IMC for playing its role in reducing car prices. The prime minister also assured that government will play its role for production of cars at reasonable prices.
Toyota Hybrid Cars in Pakistan
As mentioned earlier, Toyota announced to invest $100million in Pakistan for production of HEVs in Pakistan. As per a notification to Pakistan Stock Exchange (PSX), the company said it is taking the step after certain taxes and duties have been reduced in Finance Act 2021. “The company will invest this amount in next 3 years,” the notification read.
It further said that the investment would be for plant upgradation and extension, localization of parts/components and production preparation of the first HEV.
Tax Benefits
Under the Finance Act 2021, the government announced only 4% Customs Duty (CD) on the import of parts for hybrid vehicles. The parts include battery pack and its parts, cooling system for battery packs, sensor for hybrid vehicle battery voltage, inverter assembly with a converter (Power control unit), electric motor and generator for transaxle assembly, battery charging system, hybrid system control unit and junction box.
Meanwhile, the government announced a 3% CD on the import of parts for Plug-in Hybrid Electric Vehicle. And Sales Tax on import and local supply of Hybrid Electric Vehicles is:
- 8.5% on cars up to 1800cc
- 12.75% for cars from 1801cc to 2500cc
