Sazgar set to produce electric 2 wheelers
Aftab Ahmed
The EV Policy is implemented. M/S Sazgar Engineering Lahore, along with the other four companies, is set to start production of electric 2 wheelers shortly.
It is currently manufacturing 4 Stroke CNG Auto Rickshaws and Automotive Wheel Rims.
The government has already incorporated the policy for 2/3 wheelers and HCVs in Finance Bill 2020. It offers several incentives to set up electric 2/3 wheelers in Pakistan.
A senior official of the Engineering Development Board (EDB) said that five companies would be in the market to produce electric 2 wheelers shortly. The companies included M/S Sazgar Engineering Lahore, M/S United Motors, M/S Eifel Automobiles, M/S Jolta electric, and M/S Crown Motors.
Also, officials said that five to seven more companies had shown interest in investing in the manufacturing of 2-3 wheelers.
The government has implemented a Policy for 2/3 wheelers and HCVs. However, there is an exception of few approved proposals EDB would submit to the Ministry of Industries accordingly.
EV Policy
The PTI had approved EV Policy in June this year to set up plants in Pakistan.
Meanwhile, it approved a policy for electric 2-3 wheelers, motorcycles, rickshaws, loaders. However, it also approved incentives for heavy commercial vehicles, including buses and trucks.
The government approved a policy to acquire technology and encourage EV manufacturing. Therefore, it will help address the negative aspects of climate change through vehicle emission reduction.
The government believed that it would create employment generation through new investments. It will further reduce the oil import bill.
Incentives
The government has offered tax incentives for setting up a manufacturing plant. It reduces general sales tax to 1 percent for 2-3 wheelers.
The government exempted registration and token tax for 2-3 wheelers. It reduced toll tax to 50% for EVs.
However, the government decided that it would pass on the benefits of EV policy to existing manufacturers.
Import of 2-3 wheelers
The government also reduced customs duty on importing new EVs (2-3 wheelers) in CBU conditions from 50 to 10 percent. It capped the import of 200 units.
The government reduced custom duty to 1 percent to local manufacturers on import of entire CKD. Moreover, it reduced sales tax to 1 % at sales and waived off at the import stage. The government encouraged the State Bank of Pakistan to extend the financing for green investments.
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