The uncertainty annoys EV investors | Instant News

Apart from the electric vehicle (EV) policy for two and three-wheelers, the non-issuance of a Statutory Regulatory Order (SRO) for customs and sales tax has put potential investors in a dilemma.

According to the notification issued by the Federal Board of Revenue (FBR) on February 3, 2021, in order to amend SRO 572 (I) 2020, there will be no additional customs duties for the import of electric vehicles that are included in the Pakistan Customs Tariff (PCT). ) code 8703.8030 (electric car rickshaw), 8711.6040 (electric motorcycle), and 8711.6060 (three-wheel loader).

Although the Pakistani government has taken steps to promote electric vehicle technology in the country, the revenue council has waived additional customs duties on imports of electric two-and three-wheelers until June 30, 2025.

However, there was no mention of any two-and three-wheeler import duties, Sabir Shaikh, chairman of the Pakistan Electric Vehicle Manufacturers Association (PEVMA), said while speaking with The Express Tribune.

“We have several questions, namely what is the current import duty for the completely built units (CBU) two and three wheels? What are the withholding rates and income taxes on CBU imports? How much is the sales tax on imported CBU bicycles and rickshaws? “He has stated.

“If we import a motorbike with a fuel engine, we have to pay a 50% import duty,” said the Sheikh. “For example, if a bicycle costs Rs100,000, the importer will pay Rs50,000 for the purchase to the government due to customs duties.”

An additional 1% import duty is Rs500, but according to electric vehicle policy, the electric vehicle import duty will be charged half of the cost of a fuel-engined vehicle, the chairman said, adding, “For example, if the government charges 50% for fuel vehicles, then the government will charge 25% for imports of electric vehicles. “

The government has not issued an SRO for a 50% import duty, so anyone importing an electric motorbike has to pay the same duty, said Syekh. “The government should reduce this anomaly by issuing an SRO for this task; however, they have issued an SRO only for an additional customs duty of 1%, which is practically non-existent. “

It seems that the real situation is not being conveyed well to top officials, although Prime Minister Imran Khan and his team have been quite vocal in supporting electric vehicles, Shaikh said. “The notification released is disappointing to investors and the potential for a green revolution in the country.”

Published in The Express Tribune, February 7th, 2021.

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