Tel: +92 300 7044481| Mail: china@originalelectricvehicles.com




TWO WHEELER INDUSTRY-BUDGET PROPOSAL FY2020

Customs Duties:

A number of customs duties exist currently on two wheeler industry that include SRO 655/2006, Customs duties from 10 per cent to 20 per cent on import of assemblies, sub assemblies, components and sub components. Under same SRO, there is zero per cent duty on raw materials.
There are 50 per cent customs duties on OEMs under SRO 656/2006. Under additional duty for OEMs, another SRO 693 /2006 also prevails.
For commercial importers, customs duties hover between 50 to 55 per cent.
Chairman PEVMA, urged the government to completely abolish above SROs and introduce a uniform rate of duty for OEMs, commercial importers, parts makers etc


Sales Tax:

Currently 17 per cent has been imposed on every locally made items for registered firms and end users. But, non registered firms pay additional three per cent tax in addition to 17 per cent making a cumulative 20 per cent.

In Pakistan, manufacturers and importers have registered bogus retail shops to save three per cent additional sales tax, which they show low sales and also evade the sales tax.
Chairman PEVMA, said there is a dire need to register every retailers in the tax net. He asked the government to hold a meeting with Chairman PEVMA so that the issue of broadening sales tax could be discussed.
The government should reduce the 17 per cent sales tax on registered retailers, dealers, importers and manufacturers to 15 per cent. For non registered dealers and retailers, sales tax should be 22 per cent.
As the profit margin of retailers is only two per cent and non registered retailers could not justify its sales by paying 22 per cent sales tax.
We can explain the above issue in details if any FBR and finance ministry representatives can hold a meeting with PEVMA.


Electric Bikes:

Motorcycle is the biggest segment in terms of petrol consumption. Many people think that bike sector consumes over 60 per cent of total petrol sales in the country.
The 70cc bikes, currently plying on the roads, are like toys which have been closed down decades back in many countries. As Pakistan mainly deals with China in two wheeler segment, time has changed following rising sales of electric bikes in China. Pakistan should start making efforts to shift towards electric bikes which would save precious foreign exchange being spent on import of petrol.
Electric bike does not have any engine. But unfortunately, our OEMs and part makers have failed to develop a complete engine. Major parts of engine are being imported.
Pakistan should strive hard to move towards electric bikes in near future as the country already has body parts and battery makers.


Scotties for Girls:

Now a days Scotties have started making inroads in big cities as girls are seen roaming on the new two wheeler. To support this mode of transport, the government should relax duties and taxes to promote local manufacturing.



Muhammad Sabir Shaikh

Chairman (Cell:0333-2104417)
Pakistan Electric Vehicles Manufacturers Association – PEVMA
www.originalelectricvehicles.com
www.motorcycleexport.com
Email: muhammadsabirshaikh@gmail.com
Email: china@originalelectricvehicles.com
Address: 1 –Rabia Manzal, Plot No. 341-P, AM-18, Akbar Road, Karachi




Welcome to Contact Us - Please fill the Enquiry form and submit "