’Investors to be facilitated’, Renault, Al-Futtaim show interest

KARACHI: Government has assured foreign investors of 10-year tax exemption and other benefits under Greenfield Investment Status (GIS).
In separate talks with representatives of French automaker, Renault and Al-Futtaim of United Arab Emirates, Razak Dawood, Adviser to Prime Minister on Commerce, Textile and Industry said that government would assist and support them in resolving their issues.
Under GIS, investing companies could enjoy 10-year tax exemption in setting up plants in Special Economic Zones (SEZ) and start planning for production by 2020.
After deadline, auto industrial investors would only be able to get five-year tax holiday, as per auto policy.
Earlier, Renault could not set up its plant on time and now Company was eying other benefits as well.
Renault had also asked government to give additional time for launch of its vehicles in Pakistan otherwise, it would quit market.
The new auto policy for 2016-21 has offered benefits to new players, including many tax exemptions, under GIS, if companies set up local assembly plants before June 2021.
Due to these factors, vehicle demand has decreased 40 percent, Aamir Allawala, former President of Pakistan Association of Automotive Parts and Accessories Manufacturers was of the view.
Renault mainly produces 1,700cc vehicles, on which government has imposed 10 percent Federal Excise Duty.

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