The Economic Coordination Committee (ECC) of the cabinet in Pakistan has approved new criteria for implementing a 25% Sales Tax on locally manufactured/assembled vehicles. Chaired by the Caretaker Finance Minister, the ECC considered the proposal from the Federal Board of Revenue (FBR) on the “Rationalization of Criterion of Enhanced Rate of 25% Sales Tax on Locally Manufactured/Assembled Vehicles.”
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The committee agreed to the proposal in principle and directed a committee, including representatives from the Ministry of Commerce, Ministry of Law, FBR, and SECP, to formulate detailed proposals for this export-oriented policy reform aimed at opening up the service sector.
Additionally, the ECC approved a summary from the Intelligence Bureau for the “Provision of Additional Funds of Rs.125 Million during the Current Financial Year” to meet the increasing requirements of the Bureau for operations against terrorists and anti-state elements. The committee also gave approval for a technical supplementary grant to provide Rupee cover for the remaining funds amounting to Rs. 7,621,756,096/- of the 1st Tranche of Credit Lines of US $85 million obtained from the World Bank, as per the Finance Division’s summary.
