LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) on Thursday urged the government to ensure implementation of Automotive Industry Development and Export Plan 2021-26 in letter and spirit to achieve the desired economic results.
In a statement, LCCI resident Mian Nauman Kabir said that the government has given a good policy for auto sector which will definitely bring a revolution in auto sector but its implementation is of utmost importance.
The LCCI president appreciated the government’s initiatives in Automotive Industry Development and Export Plan 2021-26 to relax taxes and allowing new technologies in auto industry.
He said that according to the new Auto Policy, import duty on Electric Vehicles (EVs) has been reduced to 10% from 25% while sales tax on local electric vehicles (EVs) has been slashed from 17% to 1%. It will help bring in new technology with ease as the Electric Vehicles are getting popularity throughout the world because of being cost effective and environment friendly.
Mian Nauman Kabir said that reduction on sales tax on hybrid electric vehicles, reduction in Regulatory Duty on the import of hybrid completely built-up unit (CBU) will reduce their cost and will bring these into the range of the consumer.
He said that hybrids are established technology globally which can help achieve government objectives of reducing emissions whilst conserving fuel.
The LCCI president said that the car manufacturers will set a 10% export target by 2026 that is a very good initiative. It will not only encourage car manufacturers to boost up the capabilities but they will also earn much-needed foreign exchange for the national exchequer. Likewise, tax incentives for export of spare parts are also a good sign for the exports of the country.
The Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq said that the policy implementation is as important as policy formulation. The LCCI office-bearers said that the policy implementation process is often overlooked when policy is introduced potentially leading to policy failure. Therefore, implementation of Auto Policy 2021-26 should also be the prime area of the focus for the government.
Copyright Business Recorder, 2021
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