After few days to make a $450 million investment, Suzuki Motors started to ask tax exemptions from the government.
Pak Suzuki demands tax benefits for the $450 million investment in its new assembly plant in Pakistan. However, they demanded the government to grant them the Greenfiled status under the Automotive Development Policy (ADP) 2016-2021.
The policy offers tax exemption to new investors but does not allow the provision of extended Greenfield investment status to existing automobile companies such as Honda, Indus Motors, Pak Suzuki Motors.
Ministry of Industry and Production (MoIP) revealed that Pak Suzuki comes in the Brownfield status under the ADP. However, they are asking government to revise the policy so they can get the Greenfield status.
According to sources, the policy was announced by the government of PML-N to attract investors in the automobile sector. The same situation was also occurred during their tenure, but the government rejected this exemption to existing Japanese automobile companies.