Tax Could Jump from Rs 100,000 to Rs 1.8 Million! Important News for Those Wanting to Buy a Car
Islamabad (Qudrat Daily) – The sales tax exemption on electric vehicles is likely to be withdrawn, which could push the tax from Rs 100,000 to as high as Rs 1.8 million.
According to details, negotiations between Pakistan and the IMF regarding the loan programme are ongoing, while work is underway on preparing a draft of a new auto policy in light of the IMF’s objections.
Sources said the IMF has demanded the withdrawal of the concessional sales tax rate on electric vehicles.
The IMF’s position is that electric vehicles are a luxury item and not a basic necessity of the poor, therefore the concessional tax on them should be withdrawn.
Sources said that following the IMF’s objections, a proposal is under consideration to increase the sales tax on electric vehicles from one percent to 18 percent, while sales tax on electric vehicle charging stations may also be raised from one percent to 18 percent.
Sources said that, keeping in view the IMF’s objections, the draft of the auto policy will soon be presented to Prime Minister Shehbaz Sharif, and the Prime Minister will also be briefed on the IMF’s objections to the auto policy.
According to sources, if the sales tax rate on an electric vehicle worth Rs 10 million (one crore) is raised from one percent to 18 percent, the tax on it could reach Rs 1.8 million instead of Rs 100,000.
Officials said that after incorporating the IMF’s concerns into the new auto policy, the draft will be presented to the Prime Minister for final approval.
