A meeting of the Economic Co-ordination Committee (ECC) of the Cabinet approved another extension in 0.3 per cent withholding tax on banking transactions for non-filers till January 2016 and supply of 60 MMCFD RLNG gas to textile sector during winter. The meeting of the ECC, chaired by Finance Minister Ishaq, was put up a proposal by Federal Board of Revenue (FBR) regarding extension for another month for withholding tax on baking transactions for non-filers.
The ECC was informed that the reduced rate of 0.3 per cent was introduced by the government to enable the tax authorities for holding negotiations with the trading community and resolve the issues amicably after the traders went on protest against the tax. The meeting was informed that as negotiations are now in the final stages and therefore the reduced rate of 0.3 per cent may be allowed to continue for another month.
The ECC also approved a proposal by Ministry of Petroleum and Natural Resources for supply of 60 MMCFD of RLNG to textile industry for 52 days in the current winter season.
The meeting was informed as textile sector has been facing gas shortage due to increased demand of domestic sector during the winter season, the supply of 60 MMCFD would enable it to continue to operate during the peak winter season, which would eventually have a positive impact on exports.
On a proposal of Ministry of Water and Power regarding the Gas Supply Agreement (GSA) between Sui Northern Gas (SNGPL) and Rousch (Pakistan) Power Limited for supply of gas to Rousch's 450 MW plant, the ECC directed the relevant authorities to finalise the GSA, which was under negotiations. The ECC was informed by the Minister for Petroleum that the supply of LNG will be enhanced from 17th January 2016 and this will also facilitate supply of gas to certain power plants.
The Ministry of Commerce also gave a detailed presentation to the ECC on the export performance. While making note of the presentation, the Committee observed that the government had provided a number of facilities to the industrial/export sector in the recent months, including the decision relating to reduction in the rate of electricity and it was now for the industrial sector to take maximum advantage of these facilities and enhance the level of exports. The Committee directed the relevant ministries to maintain a close liaison with exporters to ensure substantial increase in exports.
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