ISLAMABAD: Senate Standing Committee on Finance has voiced strong opposition to proposed tax on hybrid and electric vehicles included in new budget.

During committee meeting, Senator Faisal Vawda made headlines by revealing that many MPs possess smuggled vehicles. He claimed that recent tax notification on vehicles, initially issued earlier this year, was an attempt to undermine Special Investment Facilitation Council policy.  He asserted his knowledge of scam due to his business background.

Senator Vawda vehemently opposed tax on hybrid and electric vehicles, questioning legality of notification and demanded accountability from relevant minister. He Senator opposed imposition of new taxes in budget 2024-25, saying that common man would not be able to buy home. He said due to imposition of taxes on International Monetary Fund’s  ‘demand’, property market in Pakistan has come to halt. In startling revelation, Vawda disclosed that an SRO issued during PTI government aimed to benefit company worth billions, unbeknownst to then Prime Minister.  Engineering Development Board also called for withdrawal of GST on vehicles, suggestion supported by committee.Meanwhile, committee also approved proposal to seal shops involved in illegal sale of cigarettes. Heated debates ensued on Finance Bill 2024, with Chairman FBR announcing removal of 25 percent tax exemption for vehicles costing over Rs 150 million. FBR Chairman noted that despite taxes, cigarette consumption has not declined, revealing seizure of Rs 400 million non-tax paid cigarette sticks this year.

Senator Vawda admitted to smoking smuggled cigarettes himself, underscoring need for stricter enforcement. Consequently, committee approved proposal to seal shops selling illegal cigarettes. There are incidences in official quarters of most number of employees have also possesed inllegal vehicles.