MoC proposes amendment to import policy order 2016

Commerce Ministry has proposed amendment in Import Policy Order, 2016 to allow commercial importers to import acetone, anthranilic acid, ethyl ether, hydrochloric acid and sulphuric acid on the recommendations of Ministry of Narcotics Control, sources close to Commerce Advisor told Business Recorder.

MoC claims that Ministry of Narcotics Control has already developed a foolproof post-clearance mechanism for the commercial importers of the controlled permitted quantity, prohibition to all unregistered entities. Ministry of National Health Services Regulation & Coordination, FBR and EDB have supported the proposal.

Ministry of Petroleum and Natural Resources has proposed supply of gas/RLNG to export oriented sectors which include textile, carpets, leather, sports and surgical goods.

Currently, SNGPL follows a mechanism whereby RLNG/gas supply to the export-oriented industry is invoiced at an OGRA notified tariff where subsidy claim ( differential of actual tariff and concessional tariff) of the preceding months is submitted on 8th of every month to Petroleum Division which after processing by the Finance Division is released to SNGPL. The mechanism of subsidy release takes 3 to 4 weeks from the date when the subsidy claim is received from SNGPL. On the other hand, export-oriented industry is only paying $ 6.5 per MMBTU against actual invoices raised by SNGPL owning to the direction of the LHC.

Petroleum Ministry has proposed that the Ministry of Commerce will issue an SRO to change the nomenclature of five zero-rated industries to export-oriented sector, including textile (including jute, carpets, leather, sports and surgical goods).

The existing subsidy mechanism will continue till June 2020. However, for clarity, SNGPL will upfront adjusted invoices at a concessional tariff of $ 6.5 per MMBTU while it will simultaneously raise verified subsidy claims for the differential amount of the preceding month to the Petroleum Division 8th of every month and Finance Division will release the subsidy amount within seven days of receipts of the claim from the Petroleum Division. No interest/late payment surcharge will be chargeable on the subsidy amount.

As per the Sales Tax Ordinance 1990, M/s SNGPL is liable to charge GST on the actual cost of gas/RLNG supplied to the export-oriented industry which is determined by Ogra, however, subject to clarification from FBR that no GST is chargeable over and above the ECC's approved tariff of $ 6.5 per MMBTU (which actually translates into government subsidy) or the government waives GST to such an extent, M/s SNGPL will charge GST on the notified tariff of RLNG/ gas which would be recoverable from the consumers and the government proportionally.

Meanwhile, the ECC which is scheduled to meet on Wednesday (today) will consider proposal of wheat import through TCP/private sector, removal of withholding tax on import of wheat by private sector and public sector procurement wheat crop 2019-20. Acquisition of up to 54.03 per cent shareholding ISIS Central Sugar Mills Company, Australia, by Almoiz Group, Pakistan will be considered by the ECC.