Islamabad: In a meeting chaired by Senate Standing Committee Senator Salim Mandviwala, he strongly opposed tax on hybrid and electric vehicles as part of the new budget.
In the meeting, the chairman of the Federal Board of Revenue (FBR) said that the 25% tax exemption for luxury cars worth more than $15 million has been withdrawn. He said it was not a decision of the FBR but a recommendation from the Ministry of Industry and Manufacturing.
Senator Faisal Vawda expressed his displeasure and said, “Tax on hybrid and electric vehicles is unacceptable.” He called on the committee to call the relevant minister for an explanation and warned: “This tax must be abolished or I will tell you publicly.”
Wawda criticized the inconsistency of the policy and said that he refrained from establishing an industry in Pakistan.
The council decided to call federal minister Rana Tanwer Hussain to resolve the issue and clarify the rationale behind the tax proposal.
In the proposed 2024-25 budget, it is proposed that new and old hybrid vehicles with engine capacity up to 1,800cc will remain zero charged, providing relief from the expected price hike.
