PM’s aide on climate change


Representational image. — APP
Representational image. — APP
  • Malik Amin stresses need to accelerate induction of EVs in Pakistan.
  • “It will help ensure safe, affordable, and emissions-free transport.”
  • Electric busses to be operational in Islamabad, PM’s aide says.

ISLAMABAD: Special Assistant to the Prime Minister (SAPM) on Climate Change Malik Amin Aslam announced on Sunday that the Climate Change Ministry has allocated Rs1.5 billion for projects under the Green Stimulus initiative, which is aimed at introducing electric vehicles in the country.

The SAPM informed APP that there was a need to accelerate the induction of electric vehicles in the country to gain the dividends of the first-ever Electric Vehicle (EV) Policy.

He said under the Green Stimulus initiative, electric buses would be launched at the mass transit metro bus routes and also a special route in the Federal Capital starting from Islamabad Zoo to Monal.

“It will help ensure safe, affordable, and emissions-free transport for the citizens and will also encourage the masses to opt for EVs,” he added.

The SAPM informed that he had opposed the proposed taxes on EVs in the federal cabinet meetings and would also continue to advocate low tariffs to be imposed on the environmental-friendly initiative.

Govt slashes sales tax on local EVs from 17% to 1%

The government had in December decided to provide incentives to EVs under the Auto Industry Development and Export Policy (AIDEP 2021-26).

The draft, released by the Engineering Development Board of the Ministry of Industries and Production, highlighted that custom duty on specific parts of the electric vehicles has been fixed at 1%.

Under the policy, customs duty on the import of EVs completely built-up (CBU) was slashed to 10% from 25%; while customs duty on specific parts of electric vehicle motorcycles, three-wheelers, and heavy commercial vehicles was set at 1%.

The auto policy also allowed hybrid manufacturing in policy as sales tax has been reduced to 8.5%. According to the draft, customs duty on specific parts for hybrid EV and plug-in hybrid EV to attract 4% and 3%, respectively.

The board also decided to reduce the regulatory duty on CBU import of hybrids (15% for above 1,800cc, 0% for 1,800cc and below).

Furthermore, the policy draft highlighted that imports of vehicles will not be allowed if they do not meet safety standards.

“No vehicle shall be locally manufactured/imported after June 30, 2022, which is not compliant with shortlisted WP 29 regulations,” the document read.

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