Reduced Customs Duties and Battery Costs to Spur Hybrid Car Market Growth
In a highly anticipated move, the fiscal budget for 2023-24 has brought forth a wave of positive developments for the hybrid car segment in Pakistan. The newly unveiled budget reveals a series of tax reductions that are expected to have a transformative impact on the import and production of hybrid electric vehicles (HEVs) in the country.
One of the key highlights of the budget is the substantial reduction in customs duty (CD) on the import of HEVs in completely built-up (CBU) form. Previously subject to higher tariffs, the CD on CBU import of hybrid cars has significantly slashed to a mere 1%. This move is poise to make hybrid vehicles more affordable for Pakistani consumers and encourage the growth of the hybrid car market.
Furthermore, the budget has also reduced customs duties on the import of hybrid car components. The CD for completely knocked down (CKD) kits of HEVs now stands at 4%, while the CD on import of plug-in hybrid electric vehicle (PHEV) CKDs has set at 3%. These reduced duties on hybrid car components expected to facilitate local assembly and manufacturing, attracting new players to invest in the hybrid car segment within Pakistan.
In a significant development, the budget also addresses the costs associated with lithium-ion batteries, which are vital for powering electric vehicles (EVs). The customs duty on lithium-ion batteries has reduced to 0%. Given that battery packs are complex and expensive components that significantly impact the prices of HEVs and PHEVs, this reduction in customs duty is expecting to result in more affordable hybrid car options for Pakistani consumers.
While the local market currently has limited options for locally assembled hybrid cars, this forward-thinking decision by the government is likely to inspire other automakers to explore opportunities and invest in the hybrid car arena in Pakistan.
The post Budget 2023-24: Massive Tax Relief Fuels Hybrid Car Growth in Pakistan appeared first on Online English News - Latest Education, Business & Trending Enews.