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NA approves Electric Vehicle Policy 2020

According to passed Finance Bill 2020 by National Assembly here on Monday, the government included Electric Auto Rickshaw, 3-wheeler electric loader and electric motor cycle where the duty under Customs Act would be charged by 50 percent.

This incentive will be applicable for five years starting from July 1, 2020. The Engineering Development Board (EDB) would scrutinize this scheme. There will be one percent duty on Electric buses, electric trucks and electric movers.

For small trailers assembling, on the 280 HP kit there will be 20 percent duty. The machinery and design plant for manufacturing of electric vehicles, there will be zero duty.

Federal Minister for Industries Hammad Azhar on Monday tweeted and stated that some amendments were tabled and passed along with Finance Bill on Monday. Some of its highlights included minimum tax waived for hospitality sector for 6 months (April till Sept), 0 percent minimum tax for Haj operators, further Federal Excise Duty (FED) reduced(total 50 paisa/kg) on cement.

The reversal of FED increase on caffeinated drinks and the government approved Electric Vehicle policy (2-3 wheelers, buses, trucks) incentives, mobile manufacturing incentives, exemption of GST from cotton seed cake, services for asset management telecom tower & data management at concessional 3% tax, he added.

Currently, engineering services have been included in specified services on which reduced withholding tax of 3 percent is applicable. The Bill proposed to exclude such services from the list of specified services.

The Act has now re-included ‘engineering services’ in the specified list along with other services of warehousing services, services rendered by asset management companies, data services provided.

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