Pkrevenue.com

Tag: Economic Coordination Committee

  • Simplified tax regime for non-residents approved: Dr. Hafeez Shaikh

    Simplified tax regime for non-residents approved: Dr. Hafeez Shaikh

    ISLAMABAD: The Economic Coordination Committee (ECC) on Wednesday approved a simplified tax regime to facilitate the non-resident companies for investment in the local capital market.

    Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance said that the ECC had approved a simplified tax regime to facilitate the non-resident companies for investment in the local capital market.

    Dr. Abdul Hafeez Shaikh said that these incentives will increase the foreign exchange inflows and reserves of the country.

    A statement issued after the ECC meeting stated that the meeting has approved separate proposals for simplification of tax regime for non-resident companies investing in the local debt market, revision of cess rate on tobacco for the year 2019-2020 and payment of outstanding amount of Rs 5.85 billion as gas subsidy to the fertilizer industry.

    The approvals were given at a meeting of the ECC which met here at the Cabinet Block with Adviser to the Prime Minister on Finance & Revenue Dr. Abdul Hafeez Shaikh in the chair.

    The ECC was also briefed on the wheat situation in the country and it was pointed out that while prices were stable in most parts of the country, there were certain areas and places such as Karachi where the wheat and flour prices had escalated.

    The ECC directed the Ministry of National Food Security and Research to sit down with all stakeholders and ensure that the situation does not get out of hands and supply of wheat and flour at regular prices is ensured.

    The ECC also considered a proposal by the Ministry of Energy for application of quarterly adjustment notified on 1st July 2019 to the zero rated industrial consumers and for it to be charged over and above the notified tariff for zero rated industrial consumers at 7.5 cents as well as a proposal to the effect that Financial Cost Surcharge, Neelum Jhelum Surcharge, taxes and positive fuel adjustments would not be part of billing to zero rated sector industrial consumers and would be part of subsidy claims to be picked by the Government of Pakistan.

    The Committee discussed the pros and cons of the proposal in view of its financial implications and asked the Finance Division to hold a meeting with the stakeholders, including the Power Division, Commerce Division and Industries & Production Division and resubmit the case to ECC with solid proposals.

    The ECC also approved proposals submitted by the Ministry of Finance for simplification of tax regime for non-resident companies investing in the local debt market with a view to deepening the country’s capital markets, reducing the cost of debt for the government and increasing foreign exchange inflows and reserves.

    The new tax regime as approved by the ECC would apply to the non-resident companies having no permanent presence in Pakistan.

    The ECC also took up a proposal for extension and rehabilitation of gas network in the oil and gas producing districts of Khyber Pakhtunkhwa and referred the matter to the Development Working Party headed by the Secretary Petroleum for an appropriate decision.

  • ECC approves 10 percent regulatory duty on cotton import

    ECC approves 10 percent regulatory duty on cotton import

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved imposition of 10 percent regulatory duty on import of cotton.

    (more…)
  • ECC bans export of wheat to control domestic prices

    ECC bans export of wheat to control domestic prices

    ISLAMABAD: Economic Coordination Committee of the Cabinet (ECC) on Wednesday decided to impose ban on export of wheat and related products in order to control prices in the local market.

    Adviser to Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC.

    A report on the wheat situation in the country was presented in the ECC by Ministry of National Food Security and Research.

    It was briefed during the meeting that adequate stocks of wheat are available in the country to cater for the needs of the population.

    It was also highlighted that the procured quantity of wheat during this year is 33% less than the procured quantities of wheat during the corresponding periods of last year.

    “The recent hike in prices of wheat and wheat flour is also a point of concern. The ECC decided to impose a ban on export of wheat/wheat flour and also asked that a meeting of National Price Monitoring Committee may be convened to suggest measures to control the price hike trend of ‘Roti’ and other wheat products in the local market with the cooperation of the provincial governments,” said a statement.

    The ECC also approved National Fertilizer Marketing Limited (NFML) to fix the Dealer Transfer Price (DTP) of 50 kg imported Urea Bag at Rs.1800 which is Rs.166 less than the prevailing average market price of Sona Urea i.e. Rs.1966 per 50 kg bag.

    The difference in Urea import price and approved dealer transfer price for NFML dealers has been estimated at Rs.937.92 million; NFML has also been directed to ensure enforcement of this price through coordination with provincial governments.

    The ECC allowed PIA Corporation Limited to make a re-appropriation in its already approved budget of Rs.24 billion for the upgradation of in-flight entertainment (IFE) system of its fleet for 8 Boeing-777 aircrafts. The project will cost Rs.700 million.

    It was also briefed during the meeting that the measures will improve the occupancy of the airline to 80 per cent from the current level of 70 per cent.

    The ECC endorsed the decision of the Governing Council of Pakistan Bureau of Statistics to change the base of price statistics from 2007-08 to 2015-16.

    The new base 2015-16 of price statistics has the following features:

    Inclusion of rural market.

    Introduction of population weight based on recent Population Censes 2017.

    Computation of indices based on Weighted Geometric Mean.

    Introduction of consumption quintiles instead of income quintiles.

    Introduction of consumer weighted approach to compute gas prices for combined income group.

    Introduction of GST, other taxes Fuel Price Adjustment to compute electricity tariffs using consumer weighted approach.

    It was also decided that for the purpose of comparative analysis, the old series of 2007-08 will continue to be published for another year along with the new series of 2015-16.

    On the summary moved by Ministry of Commerce and Textile, it was decided that the scrap slag, ash and residues containing metals, arsenic or their compounds (containing mainly Aluminum under PCT 2620.4000) may be moved from Appendix-A (Banned Items) to Appendix-B (Restricted Items) of the Import Policy Order, 2016.

    However, in order to forestall the chances of import of hazardous waste, the import may be subject to the following conditions:

    (i) Importable only by industrial consumer having recycling facilities, subject to NOC from Ministry of Climate Change and duly certified by provincial Environmental Protection Agency (Federal EPA, in case of Islamabad Capital Territory).

    (ii) Provision of a pre-shipment Inspection Certificate and consent of Focal Point of Basel Convention from the country of export to the effect that the waste/scrap is non-hazardous as defined in the Basel Convention.

    (iii) The imported consignments of the registered recycling plants shall be cleared from seaport only.

    The ECC also considered and approved the notification of Minimum Indicative Prices (MIP) of tobacco for year 2019-20.

    As per section 8 of the Pakistan Tobacco Board Ordinance 1968, the MIP for different grades of various types of tobacco are to be notified by the Federal Government.

    The following prices were suggested for notification: S.No. TYPES OF TOBACCO MINIMUM INDICATIVE PRICE PER KG FOR 2019-20 CROP 1. FCV Tobacco (Plain) Rs.190.63 2. FCV Tobacco (Sub-Mountainous) Rs.218.77 3. WP Tobacco Rs.82.85 4. Burley Tobacco Rs.150.54 5. DAC Tobacco Rs.94.76.

    The ECC also allowed that new PCT codes, as created in the Pakistan Customs Tariff through the Finance Act, 2019, may also be incorporated in SRO 693(I)/2006 dated 01.07.2006 so that levy of additional customs duty collected on those parts of Sport Utility Vehicles (SUVs) of engine capacities 1001cc to 1500cc and 1501cc to 1800cc which have been localized, may be appropriately accounted for under separate PCT codes.

    The report on National Poverty Graduation Programme of US $ 82.60 million was also submitted for compliance of the ECC by the Secretary, Economic Affairs Division.

    Among others, the meeting was attended by Minister for National Food Security & Research, Sahibzada Muhammad Mehboob Sultan; Minister for Planning, Development& Reform, Makhdoom Khusro Bukhtiar, Minister for Privatization, Muhammadmian Soomro, Minister for Railways, Sheikh Rashid Ahmed, Adviser to PM on Commerce, Textile, Industry & Production and Investment, Abdul Razak Dawood; Adviser on Institutional Reforms and Austerity, Dr. Ishrat Hussain; SAPM on Petroleum, Nadeem Babar; Governor State Bank of Pakistan, Reza Baqir and Chairman, Board of Investment, Zubair Gilani.

  • ECC approves tax incentives to shipping industry for next 10 years

    ECC approves tax incentives to shipping industry for next 10 years

    ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Wednesday extended tax incentives to shipping industry for next 10 years.

    (more…)
  • ECC approves Rs20 billion fund to support stock market

    ECC approves Rs20 billion fund to support stock market

    ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Thursday approved State Enterprise Fund worth Rs20 billion to support the stock market of the country.

    Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet.

    In order to stabilize the stock market of the country, the ECC approved the proposal of Finance Division authorizing Government of Pakistan to issue sovereign guarantee amounting to Rs20 billion for investment in National Investment Trust (NIT)-State Enterprise Fund.

    Secretary, Ministry of National Food Security and Research updated the Committee about the wheat situation in the country.

    He informed that the country was in comfortable position with having 7.257 million tons of wheat available in the stock.

    Ministry of Maritime Affairs suggested various proposals on the revival and development of shipping industry in Pakistan.

    The Committee noted the proposals and advised Ministries of Petroleum and Maritime Affairs to jointly come up with a comprehensive proposal, in next ECC meeting, for introducing a dynamic shipping policy focusing on expansion and development of local shipping industry.

    The ECC acceded to the proposal of Ministry of States & Frontier Regions to grant Rs.781,591,000/- for arranging 20,000 Metric Tons of wheat for Temporarily Displaced Persons of erstwhile FATA.

    The ECC also approved Supplementary and Technical Supplementary Grants for various Ministries/Divisions.

  • ECC reduces sales tax on petrol by 5 percent

    ECC reduces sales tax on petrol by 5 percent

    Islamabad: The Economic Coordination Committee of the Cabinet (ECC) has taken a significant step towards providing relief to the masses by approving a reduction of sales tax by five percent.

    (more…)
  • ECC directs USC to ensure essential items availability during Ramazan

    ECC directs USC to ensure essential items availability during Ramazan

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday directed Utility Stores Corporation (USC) to ensure availability of essential items during the holy month of Ramazan.

    The ECC meeting was held with Finance Minister Asad Umar in the chair.

    The Committee reviewed proposals of various ministries/divisions.

    The committee also considered and approved various demands of division ministries for supplementary and technical supplementary grants.

    Industries and Production Division gave a presentation to update the Committee about status of Ramazan Package.

    The committee directed the USC to expedite the procurement of essential consumer items so as to provide timely relief to the people in Holy Month of Ramazan.

    The ECC constituted a four-member Committee to be headed by Railways Minister, Sheikh Rashid Ahmed, to oversee the implementation of Ramazan Package.

    The Ministry of Petroleum briefed the ECC on the implementation of the Committee’s decision regarding utilization of services of Pakistan Railways for transportation of petroleum products across the country.

    The ministry of Railways informed the committee that it had the capacity to carry higher volumes and would work with the Ministry of Petroleum to explore further possibilities.

    The ECC approved, in principle, the proposal of Ministry of Information & Broadcasting for media campaign aiming to disseminate information relating to initiatives on Poverty Alleviation, Sehat Insaaf Scheme, PM’s Naya Pakistan Housing Scheme etc.

    The committee also directed the Ministry of Finance and National Bank of Pakistan to extend maximum facilitation to the USC in this regard.

    The finance minister said that the budgetary needs of many organizations had not been properly assessed at the time of preparation of budget estimate last year which was leading to a large number of demands for supplementary grants.

    He emphasized the need for proper budgeting of the financial needs of various departments, which would obviate the need for supplementary grants during the currency of the fiscal year.

    He stated that the government is determined to phase out the supplementary grants in the future budgets.

  • ECC approves Rs2 billion for Ramazan Relief Package

    ECC approves Rs2 billion for Ramazan Relief Package

    ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) convened on Tuesday under the chairmanship of Finance Minister Asad Umar and approved a comprehensive Ramazan Relief Package worth Rs2 billion.

    (more…)
  • ECC approves amending import policy order for tightening labeling requirement

    ECC approves amending import policy order for tightening labeling requirement

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved to amend Import Policy Order to further tighten labeling requirement in order to facilitate local consumers to understand product ingredients.

    (more…)
  • ECC approves Rs5.6 bn for grounded PIA planes

    ECC approves Rs5.6 bn for grounded PIA planes

    ISLAMABAD: The Economic Coordination Committee of (ECC) the Cabinet on Tuesday approved additional guarantees to Pakistan International Airlines Company Limited (PIACL) of Rs 5.6 billion for repair and maintenance of engines and acquisition of related spare parts for operationalizing grounded planes.

    (more…)