ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet on Thursday did not take a formal decision on Power Division’s proposal for passing on fuel charges adjustment (FCA) for the last eight months (November to June 2019-2020) to consumers after some participants wanted to pass on tariff increase in a staggered manner.
An official said after a heated debate on power tariff increase and suggestion by some participants that if it was inevitable, it should be passed on in a staggered manner, the Power Division withdrew its proposal during a meeting of the ECC presided over by Adviser to Prime Minister on Finance Dr Abdul Hafeez on Thursday.
According to the proposal, the FCA rate in the billing month of August 2020 would be Rs2.4226 per unit for domestic consumers up-to 300 units consumption and private agricultural except lifeline consumers, and Rs1.1711 per unit for other categories of consumers.
The FPA rate in the billing month of September 2020 would be Rs2.8603 per unit (for domestic consumers using up to 300 units and private agriculture except lifeline consumers and Rs1.0982 per unit (other consumers).
Sources said that during an informal discussion on Power Division’s proposal, some participants did not support such a huge increase in power tariff in one go at this point in time, and argued that people have already been facing difficulties and now increase in power tariff of over Rs2 per unit would add to their anger against the government.
They suggested that if it was so important and there was no other choice then the increase should be made in a staggered manner.
Some participants also expressed displeasure over performance of the Power Ministry, the official added.
On the issue of Roosevelt Hotel, adviser on finance said that all decisions related to it would be taken in the national interest and in the most transparent manner as ECC was given an update on the issue of the Roosevelt Hotel, in an earlier meeting.
The adviser directed that the issue should be handled in a fair and most transparent manner and in the best national interest.
He directed that all stakeholders, including secretary aviation, should be included in every discussion/negotiation related to the issues of Roosevelt Hotel.
Shaikh further directed that it should be made clear to all that in this transaction all matters shall be resolved in a manner that is only in favour of the country and not benefiting any individual or party.
The ECC also approved the technical supplementary grant equivalent to Rs252.382 million for the discharge of liabilities related to M/s Karkey arbitration and allowed the National Disaster Management Authority procurement of 83 X Micron sprayers for anti-locust operation with the grant of special exemption of taxes and duties of import.
On a proposal pertaining to the taxation issues related to the telecom sector, the ECC decided that the proposal may be submitted in the next ECC after thorough deliberations of its likely impact on taxation policies already in vogue by the FBR, the Ministry of Commerce and the Ministry of Industries.
Copyright Business Recorder, 2020
Comments
Comments are closed.