Islamabad: The cabinet’s Economic Coordination Committee (ECC) on Wednesday approved numerous proposals; including payment of outstanding PKR 5.85 billion in gas subsidy to the fertiliser sector, simplification of non-resident companies (with interests in the local debt market)’s tax laws, and cess rates on tobacco revision for the tax year 2019-20, according to news sources.
Advisor to the Prime Minister (PM) on Revenue, Finance and Economic Affairs Dr Abdul Hafeez Shaikh presided over a meeting to this effect in Islamabad.
Previously, the finance ministry had tabled the proposal for the revised tax regime for non-resident companies investing in the local debt market; with a view to further develop country’s capital markets, reduce the cost of debt for the government and increase the foreign monetary inflows and reserves. This new regime will be applicable to companies with no permanent presence in the country.
Similarly, the Ministry of Energy proposed the application of quarterly adjustments notified on July 01, 2019 to the zero-rated industrial consumers and for it to be charged over and above at 7.5 cents the notified tariff of zero-rated industrial units.
The Neelum Jhelum surcharge, financial cost surcharge, taxes and positive fuel adjustments would be part of the subsidy claims picked by the government, and not the part of billing to zero-rated industrial consumers.
The meeting reviewed the proposal in light of its financial implications and arranged for the finance division to meet with the stakeholders (commerce and industries, power and production divisions) and resubmit the case to the ECC with a concrete proposal.
The ECC was also briefed on the wheat price hike in certain areas including Karachi. In response, the meeting directed the ministry of national food security and research to take control of the situation and ensure the provision of flour and wheat on regular rates.
The meeting also reviewed the proposal to extend and rehabilitate gas network in the gas and oil producing districts of Khyber Pakhtunkhwa and forwarded it to the Development Working Party for consideration.
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