In a recent meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, the Federal Board of Revenue (FBR) announced its intention to seek clarification from the Ministry of Law and Justice regarding the taxation of SUVs under the category of Electric Vehicles (EVs). This move comes amid ongoing debates over the classification and taxation of such vehicles.

During the session, the FBR chairman assured the committee that a formal reference would be sent to the law ministry to resolve the issue. The committee’s agenda included several critical topics, focusing on tax policy, banking regulations, and economic governance.

A significant point of discussion was a Starred Question raised by Senator Mohsin Aziz concerning the fees collected by the FBR for Point of Sale (POS) services and their utilization. In response, the FBR chairman announced a new policy aimed at penalizing businesses that issue fake POS receipts. The penalties include a fine of Rs. 0.5 million and the closure of shops found engaging in such fraudulent activities.

Senator Aziz expressed concerns about the enforcement of these measures, noting the circulation of fake receipts, including a bill in Islamabad marked as “tentative.” The FBR chairman acknowledged these enforcement challenges and promised to enhance measures to address the issue.

The committee also tackled the topic of Islamic banking in Pakistan, which was brought up by Senator Farooq Hamid Naek. He highlighted the slow progress towards fully implementing Islamic banking, which is scheduled for 2027.

The Deputy Governor of the State Bank of Pakistan (SBP) emphasized the ongoing efforts and discussions needed to advance Islamic banking practices. He assured the committee that several banks are actively working towards compliance and that a separate meeting would be organized to discuss the abolition of interest and provide a comprehensive briefing on Islamic banking practices.