ISLAMABAD – Economic Coordination Committee (ECC) of the Cabinet hasapproved separate proposals for simplification of tax regime fornon-resident companies investing in the local debt market, revision of cessrate on tobacco for the year 2019-20 and payment of outstanding amount ofRs 5.85 billion as gas subsidy to the fertilizer industry.
The approvals were given at a meeting of the Economic CoordinationCommittee (ECC) of the Cabinet which met here at the Cabinet Block withAdviser to the Prime Minister on Finance & Revenue Dr. Abdul Hafeez Shaikhin the chair.
The ECC was also briefed on the wheat situation in the country and it waspointed out that while prices were stable in most parts of the country,there were certain areas and places such as Karachi where the wheat andflour prices had escalated. The ECC directed the Ministry of National FoodSecurity and Research to sit down with all stakeholders and ensure that thesituation does not get out of hands and supply of wheat and flour atregular prices is ensured.
The ECC also considered a proposal by the Ministry of Energy forapplication of quarterly adjustment notified on 1st July 2019 to the zerorated industrial consumers and for it to be charged over and above thenotified tariff for zero rated industrial consumers at 7.5 cents as well asa proposal to the effect that Financial Cost Surcharge, Neelum JhelumSurcharge, taxes and positive fuel adjustments would not be part of billingto zero rated sector industrial consumers and would be part of subsidyclaims to be picked by the Government of Pakistan. The Committee discussedthe pros and cons of the proposal in view of its financial implications andasked the Finance Division to hold a meeting with the stakeholders,including the Power Division, Commerce Division and Industries & ProductionDivision and resubmit the case to ECC with solid proposals.
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The ECC also approved proposals submitted by the Ministry of Finance forsimplification of tax regime for non-resident companies investing in thelocal debt market with a view to deepening the country’s capital markets,reducing the cost of debt for the government and increasing foreignexchange inflows and reserves. The new tax regime as approved by the ECCwould apply to the non-resident companies having no permanent presence inPakistan.
The ECC also took up a proposal for extension and rehabilitation of gasnetwork in the oil and gas producing districts of Khyber Pakhtunkhwa andreferred the matter to the Development Working Party headed by theSecretary Petroleum for an appropriate decision.
