The Economic Coordination Committee of cabinet has approved revisedDrawback of Local Taxes Scheme (DLTS) for the period of five financialyears from July 1, 2021to June 30, 2026.
The meeting of ECC was held under the Federal Minister for Finance andRevenue Mr. Shaukat Tarin.
The Ministry of Commerce presented a summary on the Drawback of Local TaxesScheme (DLTS) for the period 2021-26.
The ECC after detailed discussion approved revised/rationalized Drawback ofLocal Taxes Scheme (DLTS) for the period of five financial years from July1, 2021to June 30, 2026. The Scheme will be subject to quarterly/periodicreviews to gauge its impact on export performance of sectors as well asexporting firms. The estimated financial impact will be Rs79.27 billion forFY 2021-22, however, actual claims till June 30, 2022 are estimated to bearound Rs50 billion.Article continues after this advertisement
The Ministry of Industries and Production submitted a summary on theoperation of Fatima fertilizer (Sheikhupura plant) and Agritech. The ECCafter discussion approved the proposal for provision of indigenous gas totwo SNGPL based urea plants latest by March 31, 2022, resulting in savingof funds to be utilized on provision of RLNG to both these plants andcontinued operation throughout the year.
The ECC further directed to expedite the process of shifting the plants onsystem gas within one month.
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The ECC also approved a technical supplementary grant of Rs16 billion forpayment of SNGPL dues for the month of February and expected claims for theremaining months of March, April and May during the CFY 2021-22.
The Ministry of Industries and Production submitted another summary onprovision of funds to Heavy Electrical Complex (HEC) to pay liabilities onaccount of markup to Bank of Khyber (BoK). The ECC approved Rs23.309million as markup for the period of October 2021 to March 2022.
The ECC also approved TSG worth Rs500 million in favor of the Ministry ofFederal Education and Professional Training for National Commission forHuman Development (NCHD), Rs681.046 million in favor of the Ministry ofHousing and Works and Rs116.467 million in favor of Interior Division.
