Govt to finally launch country’s first Electric Vehicle Policy tomorrow

ISLAMABAD: While the government is yet to issue an ordinance or approve a money bill to implement the much-awaited Electric Vehicle (EV) Policy, the Ministry of Climate Change (MoCC) is scheduled to formally launch the policy on Thursday (tomorrow).

As per an invitation letter available with this scribe, a launching ceremony of Electric Motor Vehicle Policy would be held at the Ministry of Climate Change on Thursday, which would be attended by Advisor to PM on Climate Change Malik Amin Aslam, Industries and Production Minister Hammad Azhar, Science & Technology Minister Fawad Chaudhry and Planning Commission Deputy Chairman Muhammad Jahanzeb Khan.

Interestingly, officials of the Ministry of Industries and Production (MoIP) and its attached department, Engineering Development Board, which completed the entire process of making EV policy, were found unaware of the event.

“As MoIP had taken the lead role in formulating the country’s first-ever EV policy, the ministry should have organised this event,” a ministry insider said, adding that the climate change ministry had no practical role in formulating or implementing the EV policy.

It may, however, be noted that the MoCC had initially introduced an EV policy in the federal cabinet in 2019, but the MoIP and other departments concerned had objected the policy.

In September 2019, MoIP had asked MoCC not to intervene in affairs of the auto sector, which came under the concern of the industries ministry. Furthermore, the local automobile industry had also raised serious concerns over MoCC’s policy.

But in the first week of November 2019, the federal cabinet had unanimously approved the MoCC’s EV Policy and indicated that the policy would be implemented in its full spirit by January 2020. The cabinet’s decision came under harsh criticism from local auto assemblers, who termed it an “ad hoc decision”.

The policy was later redrafted by MoIP. Adviser to Prime Minister on Commerce Abdul Razak Dawood, who also used to hold the portfolio of adviser on industries & production, had made it clear that MoIP would be the only authority to deal with the policy.

Despite the approval of the redrafted EV policy from cabinet on December 22, 2020, it was not implemented yet for some legal hindrances regarding exemption of taxes.

It is pertinent to mention that importers and those interested in investing in manufacturing/assembling of EVs are waiting for the implementation on the policy as the government has introduced a number of tax exemptions on Completely Knocked Down (CKD) and Completely Built Units (CBUs).

As per the EV policy for four wheelers, there will be 25pc customs duty and zero per cent additional customs duty or regulatory duty on CBU imports. Besides, any company could import 100 CBUs with 50pc customs duty.