The government has taken the decision of lifting the federal excise duty (FED) on the 1,700cc and above cars. The government has been forced to take this decision owing to the surging pressure of the local car assemblers and manufacturers.
The withdrawal decision on non-filers to purchase vehicles and properties was greatly welcomed by the auto sector. The decision was given earlier in the supplementary budget. The FED imposition came surprisingly for the local assemblers and manufacturers as they heavily feared a decrease in the sale of vehicles.
Also Read: SBP Vows to Issue Digital Currency by 2025
On Wednesday the Standing Committee of the Senate on Industries and Production was informed that the 10percent FED imposition on the locally assembled cars and SUVs, that have got the engine capacity of 1,700 and more would be withdrawn.
In the briefing to the Senate Body, Abdul Razak Dawood—the Adviser to the PM on Commerce said that the decision of imposing 10percent FED on 1,700 and above cars was being reconsider and revised, as the implications of FED on auto sales and its related effect on the revenue generation were being reviewed.
He further added that all is learnt through experiences.