The government has showered a number of tax and duty reliefs on the existing and new entrants under the Auto Industry Development and Export Policy (AIDEP) 2021-26 to encourage the manufacturing of affordable vehicles including bikes, small vehicles, tractors, etc.

Besides, the five-year policy is also aimed at improving localisation, ensuring consumers’ protection, promotion of new technologies ie electric and hybrid vehicles and targeting export markets.The Federal Cabinet on Tuesday approved fresh incentives in addition to measures the government had announced in the budget FY22.

26 tax reliefs in Pakistan Budget 2021 by PTI government

Spokesperson of Engineering Development Board (EDB) and General Manager Policy Asim Ayaz told Dawn on Wednesday that “the duty and tax incentives for the auto industry are now complete.”