Hold your horses, me and mr Truong are talking each other for a long time since Pakwheels blogs, i fully understand what he mean and this is the same for him about me.
And you are of mixing things i’am a pakistani born in France (people don’t give a damn i know) since you are talking about developped countries ..
For innovation it isn’t through tax but rather by investement for example by private company, some company are investing in some university to form engineer the same engineer will work for those company, after some internship, of course those company are also found by engineers.
And for pakistan it was’t about supporting latest technological innovation but to encourage a more cleaner mean of transportation.
And another guess of course it isn’t said in Pakistan media but for the people who think a little bit, Pakistan government is encouraging Hybrid and electrical vehicles to reduce fuel consumption thus decreasing import of fuel, it’s all about economy, with the advantages that come along.
Among the great effort of this new government it is the introduction of euro 5 standards fuel reducing vehicle polution, decreasing consumption,giving better mileage and better for the engine health and cheaper than old fuel.

Nowhere did he/she say that it should be tax-free. Rather the “Tax structure based on engine displacement” is keeping the 3rd-world countries back. There should be suitable amount of tax but the tax structure should actually encourage innovation, which does happen in developed countries. Even in Pakistan, to a certain extent, the government supported latest technological innovation through special tax structures for hybrid and EVs, however the “annual token” is still “cc” based in all provinces.

Yes, I understand your point. I think Pakistan should’ve at least adopted a similar taxation strategy like Turkey. In Turkey, cars below 1600cc have low affordable tax while tax on engine capacity above 1600cc increases. Doing something similar like this would have been way better since vehicles having 1600cc engines are very common internationally. On the other hand in Pakistan where 660cc and 800cc is the norm for the middle class, it’s very hard to find suppliers to sell vehicles in these engine sizes except from Japan. That is why they changed the new Auto policy to include tax reliefs on 1000cc vehicles instead of up to 850cc vehicles since they realized that not a lot of cars come in 850cc or less engine capacity.

Yeah but if it waren’t for those taxes, Pakistan deficit would increase, rupee will be devalued and cars prices will become more expensive, and we would never see as much assembly plant as today, among our problems is among our people they are mafia, like the seller with the on/own money when buying a car. No wonder our market is growing slowly.
Pakistan isn’t a third world country and it isn’t a top country.
It’s also about adapting product for the market, as exemple Kia bring the 2012 picanto and today we can see everywhere the Picanto in Pakistan, they brought the 2017 Sorento and he is making a good start, so i think to avoid expensive price, GM or some other brand should bring an old generation model to keep the price low, it won’t be to bad since a lot of the car in Pakistan like suzuki are 30 years old, 20 years old …
For wealthy people they will always be latest generation for premium and luxury cars.

Only problem I can think of is the whole “Tax in terms of capacity of engine” thing in these third world countries. Pakistan has this system, and that is the reason people go for 660cc and 800cc cars, which are almost non existent in first world countries besides Japan. In USA, there isn’t such systems, therefore resulting with vehicles having engine capacities of upwards 5+ Liters, which is a very common sight. There are benefits to having a higher powered/more cylindered vehicle, in terms of load carrying, heavy duty workloads and long distance travelling. All of these reasons are “roz ka maamoul” in Pakistan yet we are forced to live with it by using a tiny 800cc powered carry dabba to carry an entire family of 12 in it on bumpy unfinished roads in distances upwards of 30+ kms.

So sad to know we had so many companies but it’s a govt failure they couldn’t keep the investment intact 🙁