CPEC an opportunity to boost manufacturing of electric vehicles: Chinese professor
BEIJING: Both China and Pakistan are big stakeholders when it comes to automobile production and consumption and it would be a wise decision on the latter’s part to promote manufacturing of electric vehicles (EVs) in the country.
In an article published by Chinese media, visiting professor at Southwest University of Political Science and Law, Cheng Xizhong opined that Pakistan may boldly introduce China’s advanced production technology of EVs and gradually accelerate local production and sales of these cars. It would help inject new impetus into the rapid development of the national economy, the professor highlighted.
“With the continuous advancement of the construction of CPEC and special economic zones, China and Pakistan can carry out close cooperation,” he further added.
Referring to media reports, he said federal cabinet of Pakistan has granted massive tax exemptions to facilitate promotion of EVs in the country.
The summary forwarded by Pakistani Ministry of Industries was approved by the cabinet, allowing one per cent sales tax for locally-made EVs up to 50 kwh and light commercial vehicles (LCVs) up to 150 kwh.
The cabinet also capped the duty on import of charging equipment at 1pc.
At the same time, the EVs would be exempt from federal excise duty (FED), whereas import of machinery for manufacturing of these vehicles would be duty-free. Pakistani government has further removed additional customs duty (ACD).
As per policy, there would be only 1pc tax on import of EV parts for manufacturers. Apart from the tax facilities, Pakistani government has also waived registration and annual renewal fee for EVs.
In October this year, Chinese government issued New Energy Vehicle Industry Development Plan (2021-2035).
According to the plan, development of new energy vehicles was the only way for China to become a powerful automobile country from a big automobile country. It was also a strategic measure to deal with climate change and promote green development, he shared.
Cheng Xizhong, also a senior fellow of the Charhar Institute, said that since 2012, China’s new energy vehicle industry has made great achievements and become one of the important forces in the development and transformation of the world’s automobile industry.
Currently, a new round of global scientific and technological revolution and industrial transformation is developing vigorously. The integration of automobile and related technologies in energy, transportation, information and communication is accelerating.