ECC Approves 25% Sales Tax on Locally Manufactured Vehicles

The Economic Coordination Committee (ECC) of the cabinet has approved a 25 percent Sales Tax on locally manufactured/ assembled vehicles.

The meeting of ECC was held under the chair of the Caretaker Finance Minister on Wednesday. The committee considered the proposal of the Federal Board of Revenue (FBR) regarding the “Rationalization of Criterion of Enhanced Rate of 25 percent Sales Tax on Locally Manufactured/ Assembled Vehicles”.

According to the finance division, the ECC approved the proposal after a detailed discussion.

The Finance Division sought “Approval of Share Subscription Agreement (SSA) of National Credit Guarantee Company Limited (NCGCL)” from the forum.

The ECC approved the proposal of signing of SSA between NCGCL, Karandaaz, and the Government of Pakistan through the Ministry of Finance.

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

The ECC also gave approval of the summary of the Intelligence Bureau for “Provision of Additional Funds of Rs.125 Million during the Current Financial Year” to meet the increasing requirements of the Bureau vis-a-vis operations against terrorists and anti-state elements.

The summary of Finance Division regarding “Approval of Technical Supplementary Grant for Provision of Rupee Cover for Remaining Funds amounting to Rs. 7,621,756,096/- of 1st Tranche of Credit Lines of US $85 million obtained from the World Bank” was approved by ECC.