The government has set a condition for assemblers to source parts in the local market worth at least 30 percent of the value of passenger cars before they can be exempted from VAT which is charged at a rate of 16 percent.
The VAT exemption is new and specific for assemblers of passenger cars and adds to the waiver of import duty (25 percent) and excise tax (20 percent) enjoyed by assemblers of all types of vehicles.
