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HYDERABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concern over the sales tax hike on hybrid vehicles, from 8.5 per cent to 25pc, and warned that this short-sighted policy would hurt consumers and cripple the auto industry.
In a statement issued on Saturday, Adeel Siddiqui, a member of the FPCCI Executive Committee, noted that tax concessions on hybrid vehicles expired on June 30 and with no new auto policy notified in time, the Federal Board of Revenue restored the general sales tax rate of 25pc on hybrid electric vehicles and plug-in hybrid vehicles.
He said that this represented a massive increase from earlier preferential rates of 8.5pc for hybrids up to 1800cc and 12.75pc for those above 1800cc.
So, he said, the auto industry was in chaos and automakers have temporarily halted production and stopped issuing invoices because they do not know which sales tax rate to apply.
