Incentives for new entrants in automobile sector under Auto Industry Development Program notified

Islamabad: The government has notified incentives for new entrants in automobile sector under the Auto Industry Development Program (AIDP) to create a competitive environment and availability of vehicles at affordable price.

An amended SRO issued recently by FBR says that additional customs-duty leviable under earlier SRO issued in 2006 shall not be charged on sub-components, imported in any kit form by an assembler or manufacturer declared to be a new entrant by the Engineering Development Board (EDB), for a period of 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 the new entrants that they shall chalk out a plan for progressive manufacturing of the vehicles spreading over a maximum period of three years within which they shall catch up with the localization or indigenization level of respective vehicles, as approved by Auto Industry Development Committee (AIDC) of the EDB; and continued non-levy of additional customs duty shall be contingent upon the achievement of progressive annual indigenization as determined by the committee.

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