Pakistan intends to introduce fiscal incentives such as LED manufacturing

Pakistan business records reported on May 29th, sources said the Pakistan government intends to introduce fiscal and fiscal incentives for LED and other manufacturing industries in the 2016-2017 fiscal year.

Reported that the worldwide LED industry expected to grow 45% annually before 2020, the scale of the industry from the current $13 billion 600 million to $63 billion 100 million, Pakistan LED lighting market is also growing rapidly, 2014-15 fiscal year imported about $100 million LED lights. At present, Pakistan still has a huge potential for replacement of LED lighting, the use of incandescent lamps can be replaced by LED can save about 1000MW of electricity. There are currently 4 LED manufacturers in Pakistan, the LED lamp can supply market and use various types of 0.5W-500W, but the Pakistan local LED industry development is still slow, the potential is not yet fully, the main reason is the tax policy distortions, tax cost of production LED lamp imported raw materials is higher than that of imported LED lamp, imports of raw materials production need to pay 20% of the tariffs and sales tax of 17%, 15% and 5.5% tax income tax; direct import of LED lights only need to pay 20% of the tariffs and sales tax of 17%, and the working voltage is 60 VOLTS below the LED lamp to enjoy import tariff free policy.

Reported that the Pakistani government will adjust the existing LED industry tax policy, a reasonable balance between the cost of imports and local production costs, and further promote the development of LED industry.

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