ECC approves electric vehicle, mobile device manufacturing policies

The Economic Coordination Committee (ECC) of the Cabinet has approved the ‘Mobile Device Manufacturing Policy’ as well as the ‘Electric Vehicles Policy’ [for two-three wheelers and heavy commercial vehicles].

The ECC meeting was chaired by Finance and Revenue Minister Dr Abdul Hafeez Shaikh, according to press statement issued by the Finance Ministry on Wednesday.

“After due deliberation, the forum approved removal of withholding tax of 4pc on manufacturing to retailers of locally manufactured phones to incentivise the sector,” the statement read. “Moreover, removal of sales tax on locally manufactured phones was also approved in principle and modalities in this regard would be worked out in consultation with the Finance Division.”