Under the direction of Senator Saleem Mandviwala, the Senate Standing Committee on Finance and Revenue met today to talk about the several tax measures included in the Finance Bill 2024.
Senator Faisal Vawda argued that the globe was encouraging the use of electric and hybrid vehicles, hence he was against raising taxes on them. He bemoaned the difficulties caused by unforeseen policy changes, bringing up the 25 percent sales tax on cars valued at more than Rs. 15 million. He also took issue with the different tax rates on cars made domestically and those imported.
According to Vawda, many were unaware of the new guideline if their package was scheduled for delivery within the next six months.Thus, the new tax would be payable by those anticipating a delivery within the next six months.The committee decided to put this off for more discussion.
The federal government suggested eliminating the tax breaks available to electric automobiles over $50,000 in last week’s Finance Bill.
In Pakistan, imported electric cars (EVs) were previously eligible for tax breaks to encourage uptake. Nonetheless, it has been suggested that EVs over $50,000 be subject to standard auto taxes. High-end versions like the BMW i8 and Audi e-Tron/e-Tron GT will be impacted by this new legislation. On the other hand, less expensive EVs, such as the $50,000 Rinco Aria, MG ZS EV, and MG4 EV, are probably not going to be impacted.Additionally, the government has suggested raising the withholding tax on non-electric vehicles.
