The Federal Board of Revenue (FBR) suggested raising the sales tax rate during an ECC meeting held in Islamabad.
ISLAMABAD: (UrduPoint/Pakistan Point News-Feb 14th, 2024) The Economic Coordination Committee (ECC) of the Cabinet greenlit a sales tax increase proposal for locally manufactured and assembled vehicles in Pakistan.
The Federal board of Revenue (FBR) suggested raising the sales tax rate during an ECC meeting held in Islamabad.
After thorough deliberation, the ECC approved a 25 percent sales tax rate for vehicles assembled or manufactured locally.
The decision entails imposing a 25 percent sales tax on vehicles valued at Rs four million or with 1400cc engines, which is anticipated to persist in the forthcoming budget.
The implementation of a 25 percent sales tax on 1400cc vehicles is likely to trigger a price surge.
Prior to this, the ECC endorsed a subsidy amounting to Rs 7,492.75 million under the Ramazan Relief Package 2024.
Chaired by Caretaker Finance Minister Shamshad Akhtar, the ECC meeting approved the subsidy to cater to targeted beneficiaries of the Benazir Income Support Programme (BISP), as outlined in the 2023-24 budget.
Besides it, the ECC gave the nod to a proposal regarding the "Permission to Import Wheat and Export of Wheat Flour under Export Facilitation Scheme 2021" presented by the Ministry of Commerce.
