ISLAMABAD: Pakistan’s proposed new auto policy has recommended a phased reduction in taxes on the import of hybrid vehicles over the next five years.
According to details, the Auto Policy 2026–2031 has been prepared, and its final draft has been submitted to the prime minister for consideration.
According to the draft policy, there has been a suggestion to reduce duties on imports of hybrid vehicles having engine capacity above 1,800cc in phases during the next five years.
In case of hybrid vehicles having capacity above 1,801cc, duties are suggested to decrease from 50% to 30% over five years. Likewise, for hybrid vehicles having engine capacity between 1,501cc to 1,800cc, a decrease in duties from 50% to 30% has been suggested.
The draft also suggests reducing duties on hybrid vehicles with engine capacity from 851cc to 1,000cc and up to 800cc, respectively at a rate from 50% to 30% over the next five years.
Moreover, the suggested auto policy also decreases duties on hybrid trucks from 30% to 15%.
As per the document, the duty rate on hybrid commercial vehicles is proposed to be slashed from 60 percent to 30 percent, and that on hybrid buses from 30 percent to 15 percent.
As per the proposed Auto Policy 2026-2031, the purpose of the policy is to foster a positive investment climate within the automotive industry and promote local production along with modern technology.
The proposals are still under consideration, and there might be changes made before implementation of the policy.
