Import of hybrid vehicles: government may pay Rs 6.7 billion tax rebate in FY16

Following the undue concessions on the import of used hybrid cars, the government is expected to pay a heavy tax rebate of over Rs 6.7 billion against the import of around 9,500 used luxury hybrid vehicles by the end of FY2015-16.
According to details, the government has reportedly given a whooping tax rebate of Rs 4.71 billion against the import of just over 6,400 used luxury hybrid vehicles during last 10 months of financial year 2015-16 and is expected to pay Rs 2 billion more by the end of this month.
"Instead of offering undue concessions on the import of used hybrid cars, the government should encourage OEMs to bring hybrid technology to the country as this will generate more investment and will create thousands of more jobs,,' said Aamir Allawala, former Chairman PAAPAM.
"Now that the oil prices are almost half of the price levels in 2013 when the SRO 499 was issued, there is no need for the government to give rebate of 50 percent in duties on used hybrid cars," Aamir said.
"The government should facilitate local assemblers instead to sell new hybrid vehicles, which will result in higher tax collection and local consumers will also be able to get quality maintenance services from officially recognised workshops,' he added.
Interestingly, the oil prices have touched as low as US $30 per barrel recently and are still being sold at less than US $50 per barrel, resulting in considerable saving of foreign exchange and import bill. However, the savings have almost been nullified by the rebates given on the import of used hybrid vehicles.