Observer Report
Beijing
Both China and Pakistan are big stakeholders of automobile production and consumption and it would be a positive decision for Pakistan to promote production of new energy vehicles.
Visiting professor at Southwest University of Political Science and Law, Cheng Xizhong said, “With the continuous advancement of the construction of China-Pakistan Economic Corridor (CPEC) and Special Economic Zones (SEZs), China and Pakistan can carry out close cooperation,”.
In his article published by China Economic Net (CEN) on Friday, he opined that Pakistan may boldly introduce China’s advanced production technology of new energy vehicles, gradually accelerate the local production and sales of new energy vehicles. Therefore, he said, it would help inject new impetus into the rapid development of the national economy. Referring to media reports, he said federal cabinet of Pakistan has granted massive tax exemptions to facilitate promotion of electric vehicles (EVs) in the country.
The summary forwarded by Pakistani Ministry of Industries was approved by the cabinet, allowing one percent sales tax for locally-made EVs up to 50 kwh and light commercial vehicles (LCVs) up to 150 kwh.
The cabinet also capped the duty on import of charging equipment at one per cent. At the same time, the EVs would be exempt from federal excise duty (FED), whereas import of machinery for manufacturing of these vehicles would be duty-free. Pakistani government has further removed additional customs duty (ACD).
