Islamabad, February 15, 2024 – The Economic Coordination Committee (ECC) of the Cabinet, during its meeting on Wednesday, gave the nod to an increased sales tax rate of 25 percent on locally assembled vehicles.
The decision comes as part of the Rationalization of Criterion of Enhanced Rate of 25% Sales Tax on Locally Manufactured/Assembled Vehicles (PCT87.03), proposed by the Federal Board of Revenue (FBR).
Presided over by the Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar, the ECC directed the Ministry of Industries to maintain the stability of urea prices in the market. In a press statement, the finance ministry highlighted that the committee had instructed the Competition Commission of Pakistan (CCP) to investigate the recent undue increase in urea prices and determine accountability for the same.
Among the key discussions during the meeting was the Petroleum Division’s summary on “Natural Gas Sale Pricing FY 2023-24 (Effective – 1st February 2024).” The committee decided that any revision in sale price/tariff should align with the revenue requirements of the Sui companies, recommending uniform gas prices for fertilizer plants.
Additionally, the ECC approved the proposal for signing a Share Subscription Agreement (SSA) between the National Credit Guarantee Company Limited (NCGCL), Karandaz, and the Government of Pakistan through the Ministry of Finance. Amendments in the “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,” were presented by the Ministry of Commerce. The ECC endorsed these proposals in principle, directing a committee comprising representatives of the Ministry of Commerce, Ministry of Law, FBR, and SECP to formulate detailed proposals for an export-oriented policy reform targeting the service sector.
Furthermore, the ECC gave the green light to a summary from the Intelligence Bureau requesting additional funds of Rs. 125 million during the current financial year to address the escalating requirements in operations against terrorists and anti-state elements. Another significant approval was granted for the Finance Division’s summary on the “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.”
The ECC meeting was attended by several key figures, including Minister for Privatization and Inter-Provincial Coordination, Fawad Hasan Fawad; Minister for Interior, Commerce & Industries, Gohar Ejaz; Minister for Energy and Petroleum Division, Mohammad Ali; Minister for Planning, Development and Special Initiatives, Sami Saeed; Minister of Maritime Affairs, Communication and Railways, Shahid Ashraf Tarar; Deputy Chairman Planning Commission, Dr. Muhammad Jehanzaeb Khan; Advisor to PM on Finance, Dr. Waqar Masood, federal secretaries, and other senior government officers from relevant ministries.
