FBR Confirms No New Taxes on Small Cars: Relief for Buyers & Industry Growth
- Abeera Marium Siddiqui
- February 12, 2025
- 10:44 pm
- 183
- Business
No new taxes on small cars up to 800cc, the Federal Board of Revenue (FBR) has announced. This decision brings relief to buyers looking for affordable vehicles. FBR Chairman Rashid Mahmood Langrial shared this update during a meeting with the National Assembly’s Standing Committee on Finance and Revenue.
FBR’s Commitment to Affordable Cars
FBR has assured that no new taxes on small cars will be introduced. Lawmakers raised concerns about rising taxes in various sectors. However, the chairman confirmed that buyers of cars up to 800cc will not face any extra tax. This decision is expected to increase demand and help the local car industry.
Digital Invoicing for Businesses
FBR is improving tax compliance with digital invoicing. Businesses registered under the Point of Sale (POS) system must now shift to digital invoicing. This system allows real-time tracking of transactions, reducing tax fraud and improving transparency.
New Steps to Prevent Tax Evasion
To stop tax evasion, FBR has introduced an algorithm to detect mismatched financial records. This system will not affect legal business transactions but will identify cases where businesses report lower earnings to avoid taxes.
FBR also plans to hire third-party auditors to strengthen tax collection. However, some lawmakers opposed this move, arguing that regular FBR staff should handle tax enforcement. The chairman explained that staff shortages make external hiring necessary.
Concerns Over Stock Market Regulations
Lawmakers discussed new restrictions on stock market investments. Some were concerned that even students were investing in stocks. They debated whether stricter regulations were needed. FBR has asked for recommendations before making any decisions.
Stricter Asset Declarations for Property Buyers
The committee also reviewed tax laws for real estate. Authorities want stricter asset declaration rules for property buyers to improve tax collection. Lawmakers also debated the role of government officials in enforcing these tax laws. They stressed the need for better accountability.
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