Common man will never be able to build his own home now: Faisal Vawda

ISLAMABAD: Senator Faisal Vawda opposed the imposition of new taxes in the fiscal year budget 2024-25, saying that the common man would not be able to buy a home, ARY News reported.

Senator Saleem Mandviwala chaired a meeting of the Standing Committee on Finance that also opposed a proposal to impose of tax on hybrid and electric vehicles in the next fiscal year’s budget.

Speaking on the occasion, the independent Senator said that due to the imposition of taxes in the new budget on the International Monetary Fund’s (IMF) ‘demand’, the property market in Pakistan has come to a halt.

Senator Faisal Vawda also opposed the imposition of additional taxes on hybrids and electric vehicles. He said that additional taxes on vehicles are not acceptable, demanding that the concerned minister should be summoned and asked for an explanation.

“The new taxes should not be proposed or else I will speak out openly. The electric vehicles are being encouraged all over the world but due to changes in taxes and policies no one sets up industry in Pakistan,” Senator Faisal Vawda said.

“I know who is taxing the vehicles, I should not be forced to speak out in public,” he added.

The Senate Committee on Finance decided to call up Minister for Industries and Production Rana Tanveer Hussain Rana Tanveer Hussain to the committee for the explanation.

During the meeting, the Senators were informed that the 25 percent tax exemption for vehicles costing more than 15 million has been proposed to be abolished.

At this Chairman Federal Board of Revenue (FBR) told the committee members that this was proposed by the Ministry of Industries and Production not by the FBR.

The FBR officials said that taxes have been proposed on imported vehicles and locally manufactured would not be charged with additional taxes.

The federal government is considering a proposal to increase the regulatory duty on used imported vehicles, ARY News reported.

According to the details, the federal budget for the next financial year will be presented on June 12 in which regulatory duty on imported used vehicles is likely to be increased.

According to sources, the regulatory duty on vehicles larger than 1800 cc is expected to be rise by 30 percent while the duty on large vehicles is likely to increase from 70 to 100 percent.

A 15 percent duty may be imposed on used vehicles up to 1800cc while new and old hybrid vehicles up to 1800cc may continue to enjoy zero duty.

It is feared that imported used vehicles will become more expensive in the country.