- Sales tax to be implemented “once approved” by parliament.
- Langrial says that FBR identifies unregistered companies.
- The electricity division indicates that RS1.275TR is borrowed from banks.
Islamabad: as part of its global climate commitments, Pakistan intends to increase the manufacture of electric vehicles (EV) to 2.2 million units over the next five years, mainly electric motorcycles. However, the government uses new levies on conventional car buyers to pay for these ambitious incentives, who took the legislators off guard on Wednesday, The news reported.
During its meeting, the Standing Committee of the National Assembly on Finance was informed that a three -level levy structure would be implemented: 1% for new automobile purchases up to 1300 cm3, 2% for those between 1301 and 1800 cm3 and 3% for those of more than 1800 cm3. When the members of the committee learned that these accusations were excluded from the official finance bill 2025-2026, they were shocked.
“The detail is absent from the bill,” said NA president Naveed Qamar. To which, an official of the Ministry of Law replied that it was “an omission”.
The Committee also approved the government’s proposal to impose a 10% sales tax on solar equipment, in a policy reversal that the chairman of the committee, Qamar, said from the National Assembly, not from the Senate. “It was our recommendation, not that of the Senate,” said Qamar, despite previous efforts to protect renewable energies from taxation.
The president of the Federal Board of Return (FBR), Rashid Langrial, said that the sales tax would only be implemented once approved by the Parliament. He added that efforts are also underway to extend the sales tax net – the people who are not registered will be forced to register or risk that their bank accounts were. “An unregistered person will not be able to use a bank account,” he warned. Once recorded, the account will be restored within 48 hours.
Langrial said that the FBR would identify unregistered companies using data such as electricity consumption and income tax declarations, starting with industrial units, especially in Karachi.
In a parallel effort to curb the circular debt of the powers sector, the division of powers said that 1.275 Billion of rupees is borrowed from commercial banks at 0.9% below the interban rate of Karachi at 3 months (Kibor). Funds will be used to withdraw the liabilities from the independent electricity producer (IPPS) and the power portfolio company over six years and 683 billion rupees will immediately cover PHC contributions, with 323 billion rupees reimbursed per year.
This retirement and the financing of the debt will be respected through RS3.23 / Unit Debt Service Supplement (DSS) of consumers in their invoices – exempting electricity consumers from the lifeline. “This is a Condition of the IMF, and we have to complete it,” said the secretary to power.
In addition, managers of the oil division have said that a carbon tax of RS2.5 per liter on petroleum products will start on July 1, doubles RS5 next year. The sample will extend to furnace oil, which continues to be used in IPPS factories despite its failure in public facilities. The Petroleum Levy is currently at RS77 per liter on petrol and RS78 per liter on diesel, and the government plans to increase the ceiling to Rs90 per liter.
The Minister of Finance Muhammad Aurangzeb, addressing the Committee, firmly declared that “the era of tax exemptions and Amnesties is complete”. He underlined the need to bring more people into the tax net, highlighting the application of the leniency. “We must now ensure compliance, do not continue to offer carrots,” he concluded.
