The Automotive Industry Development and Export Plan (AIDEP) 2021-2026 was recently announced, with extra benefits for automakers and the goal of improving vehicle production localization.
The electric two-wheeler business, on the other hand, is dissatisfied with the new policy because the government has not established a sales tax rate for them, according to a report from the industry.
The e-bike producers are concerned that the AIDEP 2021-26’s undetermined sales tax will suggest that the customs department will apply the same 17 percent tax rate.
According to a media source, potential investors have begun to shy away from e-bike startups as a result of the disparity.
Muhammad Sabir Sheikh, chairman of the Association of Pakistan Motorcycle Assemblers (APMA), has asked the government to clarify whether the sales tax rate has been reduced to one percent, as it has for other forms of electric transportation in the country.
He bemoaned the fact that this isn’t the first time the motorcycle sector has been excluded from such endeavours. Sheikh went on to say that as a result of the gap, business owners have become quite concerned about their future prospects in the market.
He emphasised that the government had committed to decrease sales tax on all environmentally friendly vehicles previous to the formulation of the new policy, but the new draught does not define a rate for bike manufacturers.
He emphasised that the government should ensure that the sales tax rates for e-bikes are included in the policy as soon as possible to safeguard the industry’s future in Pakistan.
To read our blog on Country’s first (ezBike ) bike-sharing service launched in Islamabad, click here.
