The Senate Standing Committee on Finance strongly opposed the new budget’s proposed tax on hybrid and electric vehicles during their recent meeting.
Senator Faisal Vawda made headlines by revealing that many MPs own smuggled vehicles, suggesting the tax notification earlier this year aimed to undermine the Special Investment Facilitation Council (SIFC) policy. With a background in business, Vawda claimed knowledge of the alleged scam.
Senator Vawda staunchly opposed the tax on hybrid and electric vehicles, questioning its legality and demanding accountability from the relevant minister. He also disclosed that an SRO issued during the PTI government purportedly favored a billion-dollar company without the former Prime Minister’s knowledge. The Engineering Development Board advocated for GST withdrawal on vehicles, a view supported by the committee.
In addition, the committee approved a measure to seal shops involved in illegal cigarette sales. Debates on the Finance Bill 2024 intensified, during which the FBR Chairman announced the removal of a 25% tax exemption for vehicles priced over Rs 150 million. Despite increased taxes, cigarette consumption reportedly remained unchanged, with Rs 400 million worth of non-tax paid cigarettes seized this year.
Senator Vawda admitted to personally smoking smuggled cigarettes, emphasizing the necessity for stricter enforcement. Consequently, the committee endorsed the proposal to seal shops engaged in illegal cigarette trade.
