Senate Body Opposes Increase in Tax on Smaller Cars

The Senate Standing Committee on Finance and Revenue, under the chairmanship of Senator Saleem Mandviwalla, held its fifth consecutive session to deliberate on the Finance Bill 2025 and the Annual Budget Statement laid before Parliament. Federal Minister for Finance Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani, Chairman FBR Rashid Mahmood Langrial, and senior officials of attached departments participated in the session. The committee expressed serious concern over the increase in GST from 12 percent to 18 percent on small vehicles, including 850cc cars. Proposals were discussed to moderate the tax to 14 percent or 15 percent instead. Senator Shibli Faraz pointed out the inequity, noting that while tax relief is being extended to certain regions, small car owners continue to face high taxation. Senator Mandviwalla praised the overall conduct and participation of members in the budget discussions, highlighting that the nature of engagement this year signifies a transparent and participatory process reflective of public will.