ISLAMABAD: The government has notified incentives for new entrants in automobile sector under its auto industry development programme.
According to the Engineering Development Board, additional customs-duty leviable under an earlier SRO of 2006 would not be charged on sub-components, imported in a kit form by an assembler or manufacturer declared to be a new entrant by the EDB.
The EDB has issued an amended SRO to create a competitive environment and ensure availability of vehicles at affordable prices.
The EDB explained that the concession would be for three years from the start of assembly or manufacturing of respective vehicles, subject to certain conditions.
To safeguard against non-serious players/briefcase assemblers, it has been made imperative for new entrants to chalk out a plan for progressive manufacturing of vehicles spreading over a maximum period of three years within which they would catch up with the localisation or indigenization level of respective vehicles, as approved by Auto Industry Development Committee (AIDC) of the EDB.
The continued non-levy of additional customs duty would be contingent upon the achievement of progressive annual indigenisation as determined by the committee.
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