Pakistan intends to push the LED lamp manufacturing industry tax incentives
Pakistan's "business records" on May 29 reported that sources said the Pakistani government intends to introduce for the LED manufacturing and other tax incentives in fiscal year 2016-2017.
Reported that worldwide LED and other manufacturing industries in 2020 is expected to grow 45% per year, industry size will grow from the current 13.6 to 63.1 billion US dollars, Pakistan LED lighting market is also growing rapidly, imports of fiscal year 2014-15 about $ 100 million LED lights. At present Pakistan still has a huge potential of LED lighting replacement, will replace the existing incandescent lights to LED to save about 1000MW of electricity. Pakistan is currently a total of four LED manufacturer, can supply the market 0.5W-500W all types and uses LED lights, but Pakistan local LED industry is still slow development, the potential is not yet full, mainly due to tax policy distortions, imports of raw materials LED taxation is higher than the cost of direct import light LED lights, imported raw materials required to pay a 20% tariff, 17% sales tax, 15% and 5.5%, adjusted tax income tax; direct import of LED lights only need to pay 20% of the tariff and 17% sales tax, and the operating voltage is below 60 volts LED lights to enjoy tariff-free import policy.
It reported that the Pakistani government will adjust the existing LED industry tax policy, a reasonable balance between imports and local production tax costs, and further promote the development of LED industry.