BEIJING, December 27 (INP): Pakistan has taken a wise decision promoting electric vehicles (EVs) in the country, this was stated by Chinese scholar Prof. Cheng Xizhong in an article published by China Economic Net (CEN).

According to Prof. Cheng, with the continuous advancement of the construction of China-Pakistan Economic Corridor (CPEC) and Special Economic Zones (SEZs), China and Pakistan can carry out close cooperation in this sector.

Pakistan may boldly introduce China's advanced production technology of new energy vehicles, gradually accelerate the local production and sales of new energy vehicles, therefore, injecting new impetus into the rapid development of the national economy.

It is wise decision on the part the Federal Cabinet of Pakistan granting massive tax exemptions to facilitate promotion of electric vehicles (EVs) in the country.

It allowed 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 one per cent.

At the same time, the EVs will be exempt from federal excise duty (FED), whereas the import of machinery for manufacturing of these vehicles would be duty-free. Pakistani government has further removed additional customs duty (ACD).

As per the policy, there will be only one per cent 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, the Chinese government issued the New Energy Vehicle Industry Development Plan (2021-2035).

According to the plan, the development of new energy vehicles is the only way for China to become a powerful automobile country from a big automobile country. It is also a strategic measure to deal with climate change and promote green development.

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.

The going trend of automobile industry is electrification, networking and intelligence. New energy vehicles integrate new energy, new materials, internet, big data, artificial intelligence and other transformational technologies.

With years of continuous efforts, the technical level of China's new energy vehicle industry has been significantly improved, and the competitiveness of enterprises has been greatly enhanced.

Since 2015, China’s production and sales of new energy vehicles have ranked first in the world for five consecutive years, and the industry has entered a new phase of superposition, convergence and integration.

China is committed to seizing the strategic opportunities, consolidating the good momentum, giving full play to the advantages in infrastructure, information and communication and other fields and promoting the high-quality and sustainable development of the new energy vehicle industry.

INP/JAVED