ISLAMABAD: The Federal Cabinet, which is scheduled to meet on Tuesday (Dec 22), will approve the imposition of additional Withholding Tax of up to Rs 200,000 on new cars aimed at discouraging 'on money' Electric Vehicle (EV) Policy and concessions for domestic manufacturing of cellphones.

To be presided over by Prime Minister Imran Khan, the Cabinet will also discuss the country's economic, political, Covid-19 and current situation with India.

On December, the ECC was informed by the Ministry of Industries and Production that unnecessarily long delivery time for vehicles by the manufacturers is a usual complaint. The system is exploited which results in additional payment known as "on money" by the buyers. In order to discourage the practice of "on money" MoI&P has proposed that additional Withholding Income Tax may be proposed on persons who buy locally manufactured cars from the OEMs and subsequently sell it within 90 days of delivery of vehicles.

The MoI&P proposed additional Withholding Tax of Rs 50,000 on engine with capacity of up to 1000 cc, Rs 100,000 on engine capacity of up to 2000cc and Rs 200,000 on above 2000 cc. which was approved by the ECC.

To facilitate individuals interested in EVs (2-3 Wheelers and HCVs) through policy intervention which could not be covered in the Electrical Vehicles policy (2-3 Wheelers and HCVs) approved by ECC in its meeting held on June 10, 2020 waiver of Additional Custom Duty (ACD) and Value Added Tax (VAT) on imports for EV (2-3 Wheelers and Heavy Commercial Vehicles), in CBU condition is proposed till 30 June 2025.

The Minister for Economic Affairs will give a presentation to the Cabinet on foreign funds, other than the loans and their utilization.

Chairman Capital Development Authority (CDA) will give a presentation to the Cabinet on encroachment on Margalla Road, Islamabad. The CDA has already issued notices to PAF and Pakistan Navy to remove encroachments but the issue is still unresolved.

The Cabinet will extend application of the Pakistan Essential Services (Maintenance) Act, 1952 to all clauses of employment under Utility Stores Corporation. Cabinet will also approve Board of Directors of ZTBL.

The cabinet will also approve Nepra’s annual report 2019-20 and State of Industry report, 2020. Section 42 of Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act. 2018 stipulates that NEPRA shall submit, to the Council of Common Interests and to the Federal Government, at the end of every financial year, but before the last day of September of that year (a) a report on the conduct of its affairs for that year including anticipated developments for the following year; and (b) a report on the state of electric power services in the country identifying the ownership, operation, management, efficiency and control of electric power facilities, amount of transmission and generation capacity, present and future demand of electricity, cost of electric power services and other matters relating to electric power services.

—MUSHTAQ GHUMMAN