In the Senate Standing Committee on Finance and Revenue meeting on Thursday, the tax on electric vehicles was postponed after Senator Faisal Vawda threatened to expose the person behind the tax.

According to the 24NewsHD TV channel, Senator Faisal Vawda as a member of the committee opposed increasing the tax rate on electric and hybrid vehicles and argued that electric vehicles are being encouraged worldwide. Faisal Vawda said that frequent policy changes deter industry set-up in the country.

Over the issue of taxes on electric and hybrid vehicles, Senator Vawda stated that it was his business and he knows who is imposing the tax on the vehicles.

Senator Faisal Vawda threatened that he would expose the proponent behind this move publically if the tax on hybrid and electric vehicles were imposed.

In the meeting, the Chairman of the Federal Board of Revenue (FBR) informed the committee that a 25% sales tax had been levied on vehicles worth more than 15 million rupees.

During the briefing to the Standing Committee on Finance by the FBR chairman, the issue of smuggled or illegal cigarettes was discussed and the committee accepted proposals to seal the shops of smugglers and illegal cigarette sellers.

The FBR Chairman stated that they are planning to amend the law to seal the shops of illegal cigarette sellers.

He noted that taxes are currently levied only on imported cigarettes. He also disclosed that there has been no apparent decrease in the number of cigarette smokers in the country.

The Chairman of the FBR mentioned that they have reduced the income tax on property. Additionally, he noted that the Federal Excise Duty (FED) is going to be imposed on the property.

He explained to the committee that the tax paid on the property would be refundable once a filer is established.

The FBR chairman also mentioned that they did not increase the sales tax on cement; however, the FED has been increased from Rs.2 to Rs.3 per kg.

During the meeting, Chairman of the committee Senator Saleem Mandviwalla asked the FBR chairman that he should inform the International Monetory Fund (IMF) that increasing revenue will also increase inflation in Pakistan.

Senator Faisal Vawda, a member of the committee warned the FBR that capital might leave the country due to its policies. He noted that property has been heavily taxed.

On this occasion, a committee member Senator Farooq Hamid Naek suggested the FBR that it should first look at the definition of FED to understand what it can be based on.

He warned the FBR chairman that FED is not about to be imposed on an item but on a transaction and it would be challenged in the court.

Senator Farooq H Naek stressed that those who do not pay taxes should also be brought into the tax net.

During the meeting, a representative of the juice industry highlighted that the FED on juices is 20% and the GST is 18%, which has negatively impacted their sales.

The Chairman of the FBR clarified that these taxes were imposed in the previous finance bill and are not part of the new financial year's finance bill.

On this , Senator Farooq H Naek said if the tax is not in the new finance bill, it could not be discussed in this meeting. Following this, the Committee Chairman suggested that industry representatives attend briefings after the budget is presented.

Reporter: Waqas Azeem