ECC approves 25% sales tax on locally manufactured vehicles

WEB DESK: The Economic Coordination Committee (ECC) of the cabinet has granted approval for a 25 per cent sales tax on locally manufactured or assembled vehicles.

The ECC meeting, chaired by the caretaker Finance Minister on Wednesday, considered the proposal put forth by the Federal Board of Revenue (FBR) regarding the rationalisation of the criteria for the enhanced rate of 25 per cent sales tax on such vehicles.

Following a detailed discussion, the ECC, according to the Finance Division, gave its approval to the proposal. Additionally, the Finance Division sought approval for the Share Subscription Agreement (SSA) of the National Credit Guarantee Company Limited (NCGCL) from the ECC.

The ECC approved the proposal for signing the SSA between NCGCL, Karandaaz, and the Government of Pakistan through the Ministry of Finance. Furthermore, the Ministry of Commerce presented a summary regarding amendments in “SRO 760(I)/2013-Import and Export of Precious Metal Jewellery and Gemstones Order, 2013” and “Import Policy Order 2022-Serial No. 16 of Part II, Appendix-B.”

The ECC agreed to the proposals in principle and directed a committee composed of representatives from the Ministry of Commerce, Ministry of Law, FBR, and SECP to formulate detailed proposals for this export-oriented policy reform targeting the opening up of the service sector.

The committee also recommended uniform gas prices for fertiliser plants. The ECC directed the Competition Commission of Pakistan to investigate the undue increase in urea prices during the recent past and fix the responsibility.

Additionally, the Ministry of Industries was directed to ensure the stability of urea prices in the market.

Moreover, the ECC approved the summary of the Intelligence Bureau for the provision of additional funds of Rs125 million during the current financial year to meet the increasing requirements of the Bureau in operations against terrorists and anti-state elements.

Lastly, the ECC approved the Finance Division’s summary regarding the approval of a Technical Supplementary Grant for the provision of rupee cover for the remaining funds amounting to Rs7,621,756,096/- of the 1st Tranche of Credit Lines of US $85 million obtained from the World Bank.

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