ECC waives off taxes on telecom
Aftab Ahmed
The Economic Coordination Committee (ECC) on Wednesday approved in principle to waive off taxes on the telecom sector.
However, ECC will give final approval, given the Federal Board of Revenue (FBR).
Currently, the telecom sector is paying 12.5% advance income tax and 17% federal excise duty on telecom services. The IT ministry had recommended ending the 12.5% advance income tax and reducing the federal excise duty to 16%.
The IT ministry had also proposed the abolition of regulatory duty on the import of such equipment. It has also proposed to reduce the additional customs duty on the raw material. It further proposed to withdraw the Rs250 tax SIM issuance tax.
However, the federal board of revenue had opposed the reduction in taxes for the telecom sector. ECC has now asked the IT ministry to modify the given FBR’s response for final approval.
ECC directed to form a subcommittee consisting of Adviser to the PM on Revenue, Adviser to PM on Institutional Reforms & Austerity, Minister for Industries & production and Adviser Commerce, to prepare a modified proposal given the FBR’s response for final approval.
Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting.
Technical Supplementary grant
ECC approved the Technical Supplementary Grant of Rs. 109.47 million to the Ministry of Defence for the survey of the coastal areas. Ministry of Maritime Affairs had surrendered the amount as the Pakistan Army had offered to assist in the survey.
The Ministry of Maritime Affairs also presented another summary for the waiver of demurrage charges on Afghan bound containers.
Demurrage charges on Afghan Transit containers
Transit Cargo/ Afghan bound containers stranded at Karachi ports. Earlier, the government had decided to ask the terminal operators to waive off 75% of Afghan Transit containers’ demurrage charges.
ECC approved to waive demurrage charges for cargo landing at ports from 22nd March to 30th September 2020(Covid-19 period).
It also approved a refund of demurrage charges already recovered from such importers of Afghan-bound transit container/cargoes.
The Minister for Maritime Affairs advised TO’s to approach their principals for approval of 75% of demurrage charges by October 5, 2020.
After the Terminal Operators showed their inability to accede to the Ministry’s request, the Maritime Ministry against brought the matter to the ECC for guidance.
ECC is directed to engage the same committee with the terminal operators to negotiate with them to reach an amicable solution.
Allocation of gas to SSGCL
ECC also approved the summary moved by the Ministry of Energy (Petroleum Division) for the allocation of another 38 MMCFD gas from 3 new wells REHMAN 6,7 and 8 to M/S SSGCL. The price of gas will be as per the applicable petroleum Policy. The producer will provide gas as per availability in the winter months.
Renewal of power supply contract with Iran
ECC approved the renewal of the contract with TAVANIR Iran for the purchase of 104MW of electricity subject to vetting by the Ministry of Law & Justice. The contract will be valid till December 31, 2021.
