The Senate Standing Committee on Finance has voiced strong opposition to the proposed tax on hybrid and electric vehicles included in the new budget.
During the committee meeting, Senator Faisal Vawda made headlines by revealing that many MPs possess smuggled vehicles. He claimed that the recent tax notification on vehicles, initially issued earlier this year, was an attempt to undermine the Special Investment Facilitation Council (SIFC) policy.
He asserted his knowledge of the scam due to his business background.
Senator Vawda vehemently opposed the tax on hybrid and electric vehicles, questioning the legality of the notification, and demanded accountability from the relevant minister.
In a startling revelation, Vawda disclosed that an SRO issued during the PTI government aimed to benefit a company worth billions, unbeknownst to the then Prime Minister. The Engineering Development Board also called for the withdrawal of GST on vehicles, a suggestion supported by the committee.
Meanwhile, the committee also approved a proposal to seal shops involved in the illegal sale of cigarettes.
Heated debates ensued on the Finance Bill 2024, with Chairman FBR announcing the removal of a 25% tax exemption for vehicles costing over Rs 150 million.
The FBR chairman noted that despite taxes, cigarette consumption has not declined, revealing the seizure of Rs 400 million non-tax paid cigarette sticks this year.
Senator Vawda admitted to smoking smuggled cigarettes himself, underscoring the need for stricter enforcement. Consequently, the committee approved the proposal to seal shops selling illegal cigarettes.
