Karachi (Republic Pk) The preparation of the new auto policy has entered the final stages and the IMF will be consulted on the tax-related proposals in the new policy.
According to details, In the initial stages, the IMF had expressed reservations over the proposal to reduce sales tax on vehicles up to 800 cc from 18 percent to 12.5 percent.
According to ARY News, there has been a delay in the government’s efforts on the auto policy. There was an attempt to bring the auto policy on July 1, but now it is likely to be brought in the first week of August because the IMF has said earlier that further consultations should be held on it, especially the Ministry of Finance, Ministry of Commerce and FBR and Ministry of Science and Technology should hold further consultations and the Ministry of Law should assist in the consultations.
According to the report, talks will also be held with the IMF, consultations will be held on five-year long-term issues related to taxes, they wanted the current auto policy to increase employment, increase investment, and adopt 62 United Nations safety standards for all vehicles in this policy.
The government will try to promote hybrid and plug-in hybrid vehicles and minimize the production of fuel vehicles, and modern technology vehicles will be manufactured, however, consultations will be held with the Monetary Fund on tax issues.