SALIENT POINTS OF PAKISTAN’S NEW AUTOMOTIVE DEVELOPMENT POLICY 2016-21

 

  • Five Years Automotive Development Policy for the period 2016-21
  • Projects have been categorized as:
    • Greenfield Investment – Category A and:
    • Brown Field Investment – Category B
  • Ninety-nine pages policy available at:

http://boi.gov.pk/userfiles1/file/AutoPolicy/AP.pdf

 

Category A – Green Field Investment means

 

  • Installation of new and independent automotive assembly and manufacturing facilities by an investor
  • Production of vehicles of a make not already manufactured or assembled in Pakistan.

 

Incentives

 

  • One time duty free import of Plant & Machinery for setting up assembly and/or manufacturing facility.
  • Import of 100 vehicles of same variant at 50% of prevailing duty for test marketing, after ground breaking.
  • Concessional rate of duty @10% for non-localized parts and @25% for localized parts on import for manufacturing of cars and LCV (light commercial Vehicles) for a period of five years.
  • Import of all parts for manufacturing of trucks. Buses and prime movers at prevailing rate for non-localized parts for a period of three years.
  • For motor cycles existing government policy shall continue.

 

Category B – Brown Field Investment means

 

  • Revival of an existing assemble and/or manufacturing facility, non-operational or closed on or before July 01, 2013.
  • Revival under taken by the Foreign Principal independently or under joint venture by original owners or new investors.

 

Incentives

 

  • Concessional rate of Duty @10% for non-localized parts and @25% for localized parts, on import for manufacturing of cars and LCV (light Commercial Vehicles) for a period of three years, and
  • Import of all parts (localized or non-localized) for manufacturing of trucks, busses and prime movers at prevailing rate customs duty for non-localized parts for a period of three years.

 

AUTOMOTIVE DEVELOPMENT POLICY 2016-2021

 

  1. One off duty free import of plants and machinery for setting up assembly and manufacturing facility;
  2. Permitted import of 100 vehicles of same variants in the form of completely build units at 50% of the prevailing duty for test marketing after the groundbreaking of the project;
  • Reduced 10% custom duty on non-localized parts for five years against the prevailing 32.5% duty;
  1. Localized parts can be imported by the new automobile investors at 25% duty compared to the current 50% for the next five years;
  2. Board of Investment will provide a single point of contact for all new investors.

 

 

 

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