AI presentation

1. 1st International AI-EV Expo’23
Organized by
Integrated Engineering Center of Excellence (IECE)
at
The University of Lahore
6th December 2023
Khalid Mahmood, CEO
Pak-China Huazi Green Energy (Private) Limited, Pakistan
Plot# 11 & 18, Zone – C, Hattar Special Economic Zone, Haripur, KPK, Pakistan
Ph No: 92 333 5134439 | 92 321 6330384 | 92 51 8742020
Website: www.huazigreen.com
EV- Public Policy & Recommendations

2. • Pak-China Huazi Green Energy (Private) Ltd. is registered company under the law of land with SECP and member of
Islamabad Chamber of Commerce & Industry (ICCI), Pakistan.
• A Joint Venture Company between Pakistan & China under SECP Policy Framework.
• Establishing its Electrical Vehicles production plant at Special Economic Zone, Hattar, Haripur, KPK, Pakistan in line with
the development trend of the Electrical Automobile Industry, with the goal of innovation driven and technological
breakthrough.
• Products: Electric 2, 3 & 4 Wheelers pure electric and hybrid vehicles with RHD and LHD.
• The Company strictly working under safety Regulations (World Forum for Harmonization of Vehicle Regulations). WP-29
• The company is starting CKD & CBU units in the end of January-2024.
• Asian Institute of Technologies – The company is in process of establishing the institute according to the development of
future EV Technologies & Human Resource Development for local & international Market.
Pak-China Huazi Green Energy (Private) Limited

3. Public Policy In Pakistan
EV POLICY: 2-3 Wheelers
• General Sales Tax (GST): @ 1%
• Specific Parts: 1 % Customs Duty (CD)
• Exemption of 2-3 wheelers from Registration and Annual Token Tax
• Reduction of toll tax to 50% for EVs.
• Benefits of EV policy to be extended to both; existing and new manufacturers.
• Import of new EVs (2-3 wheelers) in CBU condition at concessionary rate of duty (50 % of the prevailing rate of custom
duty) to be linked with establishment of manufacturing facilities i.e. 10 units per variant with maximum of 200 units
allowed to be imported under concessionary regime

4. Heavy Commercial Vehicles (HCVs) –Electric
• 1 % Customs Duty on import of CBUs
• General Sales Tax @ 1 % at sales
• Exemption of registration fee, annual renewal fee, permits and reduction of toll tax to 50 percent for HCVs. General
Proposals for 2-3 wheelers & HCVs
• Localization of parts and components to be reviewed after 2 years announcement of policy
• Duty and Tax Free import of plant and machinery to be allowed to both; existing and new entrants in both 2-3 wheelers &
HCVs
• Five year income tax exemption for auto part manufacturers for setting up manufacturing
• facility for EV related equipment
• Inputs for EV vendors to be exempted from duties and taxes for 5 years (applies to in house manufacturing by OEMs also)

5. EV POLICY Four(4) Wheelers
• CKD, parts 1% CD, ACD 0%, RD 0%,
• CBU import may be made at CD 25%, ACD 0%, RD 0%.
• Duty free import of plant and machinery of EVs, 0% CD, ACD 0%, RD 0%,
• Import of 100 CBUs per company @ 50% of the prevailing custom duties,
• Import of EV Chargers to attract 1% CD, ACD 0%, RD 0%.
• EV specific parts, in CKD, to attract 0%VAT on imports,
• Import of CKD in small cars/ SUVs with 50kwh battery or below and LCVs with 150kwh battery or below to attract:
• Exemption of sales tax and VAT on imports and 1% sales tax on sales,
• 1% WHT under Section 148 of Income Tax Ordinance.
• GST and VAT on import stage to be exempted for such LCVs and Cars/SUVs.
• CBU import may be made at 0% VAT on imports.
• Exemption of EVs (4 wheelers) from FED.
• Provision of special window for car financing at 1+4% (State Bank of Pakistan).
• Exemption from Registration Fee and Annual Renewal

6. Custom Duty Structure - A Case Study
2 Wheeler
HS Code Unit Price (USD) Quantity Import Value
8711.604 566 1 164,928
Duty Name
Customs Duty
Applicable Rate Net Payable Amount
50%
82,464
Sales Tax 18% 46,608
Income Tax 12% 36,665
Additional Custom Duty 7% 11,544
Grand Total 177,281

7. Custom Duty Structure - A Case Study
4 Wheeler
Unit Price (USD) Quantity Import Value
7000 1 2,039,741
Duty Name
Applicable Rate Net Payable Amount
Customs Duty
50% 1,019,870
Sales Tax 18% 576,430
Income Tax 12% 453,458
Additional Custom Duty 7% 142,781
Grand Total 2,192,539

8.  Norway
 China
 Germany
 United States
 Netherlands
Comparative Study – Incentives & Exemptions

9.  Norway
• Exempt from import duties
• Exempted one-time registration tax
• Reduced or waived tolls on many roads and bridges.
• Granted the privilege of using bus lanes, allowing them to bypass traffic in congested areas.
• Many public charging stations in Norway offer free electricity, encouraging the use of electric vehicles.
• Free or discounted parking in city centers.
 China
• Credit system for automakers, where they earn credits based on the production and sales of new energy vehicles.
• Imposed sales quotas for NEVs on automakers. These quotas mandate that a certain percentage of an automaker's total annual
vehicle sales must be new energy vehicles.
• Introduced regulations related to the recycling of batteries used in electric vehicles. These regulations aim to address
environmental concerns associated with battery disposal and promote sustainable practices in the electric vehicle industry.
• Chinese authorities have established product certification and safety standards for electric vehicles to ensure their reliability,
safety, and compliance with technical specifications.
• China has extended its tax exemption policy for new energy vehicles (NEVs) until 2027.

10.  Germany
• Reduced or waived vehicle taxes.
• Some cities in Germany: Financial incentives, Access to carpool lanes, and preferential parking for electric vehicles.
• Partnerships between the government, private sector, and local authorities for EV charging infrastructures.
• The German government has allocated funds to support the deployment of charging infrastructure. Financial incentives
and grants are provided to businesses, municipalities, and organizations to install public charging stations.
• The Government is committed to have 1 million public charging points across the country by 2030.
 United States
• Generally, the tax credit ranges from $2,500 to $7,500 per vehicle at Federal Level.
• Some states provide their own tax credits for electric vehicle purchases, which can be applied in addition to the
federal tax credit.
• Access to carpool lanes, even when driving alone.
• Reduced registration fees for electric vehicles
• States may provide incentives for the installation of public and workplace charging infrastructure. (grants,
rebates, or tax incentives for businesses or property owners installing EV charging stations).

11. • Some states offer special license plates for electric vehicles, often providing additional benefits such as free parking or
reduced tolls.
• Educational programs to raise awareness about the benefits of electric vehicles. These programs may include outreach
events, workshops, and informational resources for consumers.
• Public & private collaborations to install public charging stations in strategic locations such as urban areas, shopping
centers, parking lots, and along highways.
• Governments often allocate funds and offer grants to support the installation of electric vehicle charging infrastructure.
These financial incentives encourage businesses, municipalities, and other organizations to invest in charging stations.
• Electric utilities: Special rates for EV charging
• Governments may provide incentives, tax credits, or grants for businesses that install EV charging stations at private
premises. This encourages the development of workplace charging infrastructure.
• Standardization of charging plugs and protocols ensures compatibility among different charging stations. This
encourages widespread adoption and simplifies the experience for EV users.
• The U.S. Customs and Border Protection (CBP) rates: Auto: 2.5% , Trucks: 25% , Motorcycles: 2.4%

12.  Netherlands
• Exempt from the BPM (import tax) & Registration.
• Offers various subsidies and incentives for electric vehicle buyers. This includes financial incentives for purchasing
new electric vehicles, grants for charging infrastructure at home or at businesses, and exemptions from tolls in
certain areas.
• Access to special parking spaces
• Manufacturing Companies: Tax advantages, Environmental Investment Allowance, subsidies.
• Grants to purchase Electrical Vehicles and establishment of Charging Infrastructure Development.
• No tax: All Motor vehicles (2 & 4 Wheelers etc.)

13. Recommendations for Pakistan
• To import CBUs units: Sale tax (18%), Income tax (12%), additional custom duty (7%) be exempted for at least 2 years.
Such measures will help to decrease import of gasoline products and save the foreign currency.
• Engineering Development Board – Provincial Assembling / OEM certificate be issued under a specific time framework.
• No lead acid batteries are allowed to be used in any category of EVs. (lithium iron phosphate battery (LiFePO4) be used).
• The vendors must give specific guaranty of batteries. (for 2 & 3 Wheelers minimum 2 years and for 4 Wheelers Upto
120,000KM)
• Special incentives and grants are given for R&D to different universities/ organizations to develop new EVs projects.
• Grants are provided to different educational institutions to train human resources development for local and international
markets including Scholarship to deserving students.
• Only certified human resource should allow to work with industry.
• The Higher Education Commission should prepare a curriculum for BS & MS level including the needs of future
technology, vehicle design and soft skills.
• EV/ Battery & Motor Quality Standards: According to Pakistani culture and requirement quality & safety standards be
adopted.

14. • Standards required for the construction and operation of charging stations, as well as technical specifications for
charging connectors.
• Special Financial loans policy is required from States Bank, incentives from city governments for charging stations
network.
• All new filling stations must have EV charging facilities.
• All present oil marketing companies are directed to provide the EV charging facilities on priority basis (PSO, Shell, Total,
etc.)
• NEPRA should announce a special discounted rate for EV charging companies.
• Special Green plates are provided to all EVs to promote the EVs industry.