The Nation (Pakistan )·4 min read·medium

Tax relief for vehicles above Rs10m raises govt's fiscal priority questions

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The Nation
Tax relief for vehicles above Rs10m raises govt's fiscal priority questions
AI Summary

The Pakistani government is considering tax relief for luxury hybrid vehicles, sparking criticism regarding fiscal priorities. Critics argue that such concessions are inappropriate while the country remains under an IMF program requiring economic austerity.

The Finance Bill 2026 increased the sales tax on hybrid and plug-in hybrid vehicles to 25% as part of efforts to strengthen revenues and meet fiscal commitments.

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