Consumers will actually be unable to avail the benefit of 100 percent exemption in customs duty on the import of hybrid vehicles, as all renowned brands are selling such hybrid electric vehicles with engine capacities above 1200CC, experts told this correspondent on Sunday. They said that there was an immediate need to amend the SRO.499 (I)/2013 to allow 100 percent exemption on duties and taxes on the import of vehicles with an engine capacity of up to 1500cc.
They also said that the remaining slab limits could be revised accordingly. At present, there are hardly any hybrid vehicles available in the market with an engine capacity of 1200cc and an increase in engine capacity would pass on real benefit of the budgetary relief to the general public.
Analysts termed the PML-N government move to reduce duties and taxes on the import of hybrib electric vehicles wise and said that it had been done to offset gas and energy shortages.
This initiative, analysts believed, would reduce the import bill of fuel for motor vehicles and ultimately reduce the cost of transportation in the country.
Under SRO499 (I)/2013 dated June 12 this year, vehicles having an engine capacity of up to 1200cc were allowed 100 percent exemption on duties and taxes, 50 percent on 1201-1800cc vehicles and 25 percent on 1801-2500cc vehicles.
Interestingly, there is hardly any vehicle of renowned brand available in the world with an engine capacity of up to 1200 CC hence nobody will be able to avail the benefit of the concession in tax and duties and the policy would be a an exercise in futility if it was not reviewed in a timely manner.
For example, the most popular are Toyota (Prius, Yaris) which are 1497cc and Honda (Civic, Jazz, Fiat, Insight) which are 1339cc), experts said.
It is now the right time for the Federal Board of Revenue and the budget review committee to suitably revise the above SRO.
Another important step in this connection is to allow the import of Hybrid Electric Vehicles (HEVs) which are up to five years old, instead of just three years old. Implementation on both these steps by the federal government will really usher in a 'green revolution', besides resulting in substantial savings for the national exchequer, experts added.