The National Assembly Standing Committee on Finance has approved proposals to impose heavy taxes on imported hybrid, electric, and luxury vehicles, including 30 to 40 per cent customs duty and 86 to 92 per cent special excise duty.
According to Express News, the committee meeting was held on Sunday under the chairmanship of Syed Naveed Qamar, where key issues, including taxation on imported and locally assembled mobile phones, the auto policy, electric vehicles, and import duties, were discussed in detail.
The committee also reviewed the five-year auto policy. Minister of State for Finance Bilal Azhar Kayani informed the meeting that the current auto policy is set to expire on June 30.
During the briefing, the Secretary of Commerce told the committee that there is a proposal to reduce the overall tax burden on 1,800cc vehicles to 74 per cent, compared to the current level of up to 156 per cent, which includes customs duty, additional customs duty, and regulatory duty.
Similarly, proposals include reducing duties on 1,500cc to 1,800cc vehicles from 91 per cent to 57 per cent, on 1,000cc to 1,500cc vehicles from 76 per cent to 52 per cent, and on 850cc vehicles from 66 per cent to 42 per cent.
During the discussion on auto policy, committee member Javed Hanif Khan said that no relief had been provided to the public in taxation. In response, Minister of State Bilal Azhar Kayani questioned why changes were made in the Finance Bill if no relief had been given.
The committee also reviewed proposals related to electric vehicles. FBR officials stated that electric vehicles worth up to USD 75,000 would be exempt from Federal Excise Duty, while EVs valued at less than Rs200 million would also remain exempt. However, electric vehicles above Rs200 million will be subject to taxation.
