Senate panel suggests tax relief for e-vehicles

ISLAMABAD:

The Senate Standing Committee on Finance has recommended tax exemptions for all electric vehicles, regardless of size or usage. The committee has also approved the Banking Companies Amendment Act 2024.

The Senate panel chaired by Senator Saleem Mandviwala directed that no distinction should be made among electric vehicles, and those used for goods transportation should also receive tax relief.

Senator Manzoor Ahmed raised concerns about a 10 percent levy on Iranian transport. However, Member Customs Jalil Jalal clarified that Iranian transportation enjoyed duty-free access in Pakistan.

Member IR Operations informed the committee that Rs647 million had been collected from point-of-sale receipts since July 2023.

The committee also discussed the Banking Companies Amendment Bill 2024 during the meeting. Finance Minister Muhammad Aurganzeb said the bill authorises the finance minister to waive penalties imposed by the State Bank on any bank, adding he does not consider such authority correct. The State Bank is fully autonomous and it should have the freedom to make decisions and implement them, he said.

The SBP deputy governor informed the committee that the proposed bill also suggested handing over seized accounts of proscribed organizations to the State Bank, but it was not necessary as a frozen account cannot be used. Finance Minister Muhammad Aurganzeb agreed with the deputy governor's stance, saying that they respected his opinion and considered it valid.