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A tax revenue loss of Rs. 1,384 million occurred due to increasing the luxury tax exemption limit for electric vehicles under a remittance scheme for overseas workers, with the program plagued by unethical permit issuance, vague eligibility criteria, and poor governance.
A National Audit Office report reveals a Rs. 1,384 million tax revenue loss due to increasing the luxury tax exemption limit from Rs. 6 million to Rs. 12 million for electric vehicles imported under a scheme for overseas workers, with 510 vehicles imported and only 375 registered by June 2024. The scheme, launched in 2022 to boost remittances, received US$ 121.5 million but faced significant lapses, including unethical permit issuance, non-verification of foreign employment, and vague eligibility criteria. The report highlights poor governance, lack of inter-agency coordination, and the need for stricter oversight to prevent misuse of resources.
