ISLAMABAD: In a meeting chaired by Senator Salim Mandviwala, the Senate Standing Committee on Finance expressed strong opposition to the proposed tax on hybrid and electric vehicles included in the new budget.
During the session, the chairman of the Federal Board of Revenue (FBR) stated that the 25% tax exemption for expensive vehicles over Rs15 million had been abolished. He clarified that this was not an FBR decision but a proposal from the Ministry of Industries and Production.
Senator Faisal Vawda voiced his discontent, declaring, “Tax on hybrid and electric vehicles is not acceptable.” He urged the committee to summon the minister concerned for an explanation, warning, “This tax has to be abolished, or I will speak up openly.”
Vawda further criticized the inconsistency of policies, stating that it deterred him from establishing industries in Pakistan.
The committee resolved to call Federal Minister Rana Tanveer Hussain to address the issue and provide clarity on the rationale behind the tax proposal.
In the budget 2024-25 proposals, there was a silver lining for buyers of new and old hybrid vehicles with engine capacities up to 1800cc, as it was suggested that they would continue to enjoy zero duty, providing some relief amidst the anticipated price increases.
