ISLAMABAD: The Federal Board of Revenue (FBR) is set to seek clarification from the Ministry of Law and Justice regarding the taxation of SUVs as Electric Vehicles (EVs), a matter that has sparked significant debate. The Senate Standing Committee on Finance and Revenue was informed about this move during its session on Wednesday.
The committee also addressed a Starred Question raised by Senator Mohsin Aziz regarding the fee collected by FBR for Point of Sale (POS) services and its utilization. The FBR Chairman confirmed that a new policy would be implemented to penalize businesses caught issuing fake POS receipts. Those found guilty would face fines of Rs. 0.5 million and the closure of shops involved in such fraudulent practices.
Senator Aziz pointed out ongoing issues with fake receipts in the market, including a suspicious bill marked as “tentative” from Islamabad. The FBR chairman acknowledged these concerns and assured the committee that measures to strengthen enforcement would be introduced shortly.
Another significant topic discussed was the progress of Islamic banking in Pakistan. Senator Farooq Hamid Naek raised concerns about the slow pace of the full implementation of Islamic banking, which is expected by 2027. In response, the Deputy Governor of the State Bank of Pakistan (SBP) emphasized the ongoing efforts by several banks to meet compliance standards. The committee agreed to schedule a separate meeting to delve deeper into the issues surrounding the abolition of interest and to provide a comprehensive briefing on Islamic banking practices.
The discussions underscore the government’s ongoing efforts to improve tax enforcement and the broader regulatory landscape, including the controversial issue of electric vehicle taxation and Islamic banking reforms.
