A sales tax of 25% is levied on cars manufactured in the area.
A 25% sales tax on cars made domestically has been authorized by the Economic Coordination Committee (ECC), which will hit customers who are already feeling the pinch of inflation on Wednesday.
The Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar, chaired the committee meeting.
As per the authorized guidelines, locally built automobiles with engines exceeding 1400 cc or those priced at Rs 4 million or more would be subject to a sales tax of 25%. Despite the fact that these actions are meant to increase government income, they will severely hurt consumers who are already struggling with inflation.
The International Monetary Fund (IMF) has also requested that the committee approve an increase in gas prices of more than 65 percent. A final federal cabinet clearance is required; if approved, the increase will affect both protected and non-protected customers starting on February 1.
People are facing an increasing amount of taxes as a result of the rising cost of gas. Protected users will soon see a spike of Rs 100 per mmbtu, while non-protected consumers will see a sharper increase of Rs 300 per mmbtu. People who use a lot of gas would see a significant hike of Rs 900 per mmbtu.
Furthermore, with an authorized rise of Rs 170 per mmbtu, the CNG industry is expected to shoulder an additional cost. Nonetheless, set fees for both covered and non-protected clients won’t alter.
In order to provide a fair playing field in this industry, the ECC has also approved the adoption of a consistent gas pricing for all urea fertilizer plants.
The plan to sign a Share Subscription Agreement (SSA) between National Credit Guarantee Company Limited (NCGCL) and Karandaz, as well as the Pakistani government via the Ministry of Finance, was accepted by the committee.
Furthermore, with an authorized rise of Rs 170 per mmbtu, the CNG industry is expected to shoulder an additional cost. Nonetheless, set fees for both covered and non-protected clients won’t alter.
In order to provide a fair playing field in this industry, the ECC has also approved the adoption of a consistent gas pricing for all urea fertilizer plants.
The plan to sign a Share Subscription Agreement (SSA) between National Credit Guarantee Company Limited (NCGCL) and Karandaz, as well as the Pakistani government via the Ministry of Finance, was accepted by the committee.
A description of the changes to the “Import Policy Order 2022- Serial No. 16 of Part II, Appendix-B” and “SRO 760(I)/2013-Import and Export of Precious Metal Jewellery and Gemstones Order, 2013” was given by the Ministry of Commerce.
The proposals were approved in principle by the Economic Coordination Committee, which also instructed a committee made up of representatives from the Ministry of Commerce, the Ministry of Law, the FBR, and the SECP to develop comprehensive proposals for this export-oriented policy reform that aims to open up the service sector.
In order to fulfill the Intelligence Bureau’s growing needs for operations against terrorists and anti-state groups, the ECC also accepted the Intelligence Bureau’s proposal for “Provision of Additional Funds of Rs. 125 Million during the Current Financial Year.”
Approval of Technical Supplementary Grant for Provision of Rupee Cover for Remaining Funds equal to Rs. 7,621,756,096/-of 1st Tranche of Credit Lines of US $85 Million acquired from the World Bank” is the summary of the Finance Division that ECC approved.