The International Monetary Fund (IMF) team held talks with the Pakistani officials over climate finance on Wednesday.
An IMF delegation arrived in Pakistan on Monday to discuss climate financing with the authorities.
The lenders team objected over the proposed sales tax relief on electric vehicles and rejected the relief offered in the country’s electric vehicle policy, sources said.
The IMF team also opposed sales tax concession in local sale of the parts of electric vehicles, sources shared. The IMF officials suggested routine tax rate in the new electric vehicles policy.
The team demanded of the authorities not to offer any concession over the raw material used in manufacturing of EVs including local supply and sale of automobile spare parts.
The delegation stressed that no extra tax relief can be offered over electric vehicles in future, according to sources.
The Ministry of Industries and Production had proposed sales tax relief over the electric vehicles manufacturing in the country.
Sources said that the third round of talks on climate financing will be held today. The talks are scheduled over charging stations for electric vehicles and the OGRA tariff adjustment mechanism.
