In a recent development, the Economic Coordination Committee (ECC) has announced an increase in the sales tax on vehicles valued at Rs 40 lakh or with engine capacities of 1400cc. The sales tax on these vehicles will now stand at 25%, a decision made during a meeting chaired by Finance Minister Dr. Shamshad Akhtar.
According to a statement issued by the ECC, the move to raise the sales tax aims to boost revenue collection at the local level. It is estimated that this adjustment will generate an additional Rs 4 billion for the Federal Board of Revenue (FBR) during the current fiscal year.
Furthermore, it has been disclosed that the increased sales tax on 1400cc vehicles, valued at Rs 40 lakh or above, will also be implemented in the upcoming budget. This significant hike in sales tax is expected to have an impact on vehicle prices, potentially leading to an increase.
Additionally, the ECC meeting addressed other economic matters, including the equalization price of gas for fertilizer factories. It was decided that the Competition Commission would investigate any potential collusion in fertilizer prices, reflecting the government’s commitment to ensuring fair market practices.
The decision to revise the sales tax on vehicles reflects the government’s ongoing efforts to bolster revenue collection and address economic challenges amidst evolving market conditions.
