Pakistan on May 29, the business record, message, according to the Pakistani government proposed in fiscal year 2016-2017 for tax incentives for leds and other manufacturing industry.

According to the report, LED and other manufacturing industries around the world before 2020 is expected to grow 45% a year, industry scale will increase from the current $13.6 billion to $63.1 billion, Pakistan LED lighting market is also growing rapidly, imported a about $100 million in fiscal 2014-15 leds. There are still huge potential of LED lighting to replace with Pakistan, will existing use incandescent lamp to replace the LED can save about 1000 mw of electricity. Pakistan now four LED manufacturer, can supply market 0.5 W - 500 W each type and the use of LED lights, but Pakistan's domestic LED industry develops slowly, still is not going to give full play to their potential, the main reason is that the tax policy distortion, imports of raw materials in the production of LED lights the fiscal and taxation cost more than the direct import LED lights, imports of raw materials production needs to pay the duties, a 17% sales tax of 20%, 15% c and 5.5% income tax; Direct import LED lights only need to pay the tariff and a 17% sales tax of 20%, and the working voltage is lower than 60 volt leds enjoys tariff-free imported policies.

Report says, the government will adjust the existing LED industry tax policy, reasonable balance imports and domestic production of tax cost, further promote the development of LED industry.