ISLAMABAD: Minister for Industries and Production Khusro Bakhtiar on Wednesday said the prices of different vehicles were being reduced in the country as a result of tax relief announced by the government for the auto sector.

He said this while addressing a news conference in Islamabad. He was flanked by Minister for Information and Broadcasting Chaudhary Fawad Hussain.

The minister for industries and production said that the notification regarding reduction in the prices of vehicles would be issued in a couple of days, by the weekend.

He said prices of small vehicles would be cut up to 0.1 million rupees, while down payment for purchasing the first vehicle has been reduced by 20 percent of the total cost.

“When vehicles’ prices are reduced, it boosts their production. The process of lease of vehicles would be made easy. Whoever will buy a vehicle he would have to get it registered on his name,” he said.

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He said the government was going to introduce a fantastic scheme for the first-time buyers of vehicles.

Khusro Bakhtiar said the total capacity of Pakistan’s auto sector was to manufacture 0.41 vehicles. He said the Pakistan Tehreek e Insaf government had stabilized the economy and now the country was moving towards growth.

He said 0.164 million vehicles were produced last year and the government aimed to increase the demand and production to at least 0.3 million. He said each vehicle generated new jobs, so the increased production of vehicles will create 0.3 million fresh jobs in the auto sector.

The federal minister said that the government had exempted vehicles from federal excise duty and additional customs duty and for small vehicles sales tax as well under ‘Meri Gari Scheme’.

660 cc vehicles’ (Alto) price would be reduced up to 105,000, 1000 cc vehicles’ prices would be cut up to 142,000, price of Cultus vehicles would be cut by 186,000 and prices of Honda City, Toyota Yaris will be reduced up to 125,000, he maintained.

“2.6 million motorcycles were manufactured last year, while during the ongoing year 3 million motorcycles would be produced, which would create 75,000 new jobs,” he said.

Bakhtiar said the government’s new policy had a great focus on localistation/ indigenization.