Overview
Toyota brings great breaking news for their hybrid cars lovers. The company has announced to assemble hybrid cars locally very soon in Pakistan. Toyota notifies the Pakistan Stock Exchange (PSX) that the company will invest the money in locally assemble hybrid cars after receiving a certain tax reduction from the government. Moreover, Indus Motor Toyota has a plan to invest 100million in this project in the next 3 years. This will be the pleasure of Toyota Pakistan consumers to get Hybrid cars in Pakistan. Before that Toyota Pakistan offer CBU hybrid units of Toyota Corolla Cross and Prius. Very soon Toyota offers locally assemble hybrid cars. The company has stated that they spent 100 million investment to build a plant, manufacturing, and preparation for production.
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Finance Act 2021
The government provides relief to the automakers on the import of hybrid vehicles parts. According to the Finance Act, 2021 government will only charge 4% Customs Duty on hybrid vehicles parts. The hybrid vehicles parts included:
- Battery pack
- Cooling system for battery packs
- Sensor for hybrid vehicle battery voltage
- Inverter assembly with a converter
- Electric motor
- Battery charging system
- Generator for transaxle assembly
- Hybrid control system
- Junction box
Government has to provide relied on hybrid vehicle parts to encourage the local production of hybrid cars. Moreover, under the Finance Act 2021, the customs duty on imported parts of Plug-in Hybrid Electric Vehicles is only 3%. That does not end here, imported and local supply of hybrid vehicles up to 1800cc only pay 8.5% sales tax and 1801 to 2500cc pays 12.75%.
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Conclusion
The announcement of locally manufacture hybrid vehicles is a great step in starting hybrid vehicle production in Pakistan. Toyota Pakistan got a very good benefit of tax reduction and utilize the tax relief to enhance company position and trust in the country. Hybrid Electric Vehicles are the future of the automobile industry and the government has announced the relief to encourage automakers to locally assemble HEV production. Locally assemble HEV will be a more convenient way for the consumers to purchase and will be affordable than the imported units.
