The Economic Coordination Committee (ECC) of the Cabinet allowed a levy of 10 % regulatory duty on the import of Motor Spirit.
As per the details, Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the ECC of the Cabinet at the Finance Division.
Ministry of Commerce submitted a summary on levy of regulatory duty on import of Motor Spirit.
It was informed that the import of Motor Spirit (MS) is subject to 10% Customs Duty under the 5th schedule of the customs Act, 1969, but it is subject to 0% under China Pakistan Free Trade Agreement (CPFTA).
That availing of the FTA exemption pays zero customs duty while others pay customs duty at the rate of 10%.
The ECC after discussion, in order to address this anomaly, allowed a levy of 10 % regulatory duty on the import of MS. However, where customs duty at the rate of 10% is paid on import of MS, it will be exempted from the levy of regulatory duty.
Ministry of Industries and Production submitted a summary for the release of funds for SSGC for gas supply to Pakistan Steel Mills (PSM). It was submitted that due to the closure of the production activity in Pakistan Steel Mills(PSM), low flame gas of 2 MMCFD is being supplied to PSM primarily to preserve the Coke Oven Batteries and refractories kilns with an average monthly bill of Rs. 80 million (Approx.).
The ECC after discussion allowed the release of Rs. 620.85 million for making payment of 8 months’ outstanding gas bills i.e. July 2021 to Feb 2022.
Ministry of National Food Security & Research tabled a summary for revision of Cess rates on Tobacco for the year 2022-23. The current Cess rates on all types and varieties of tobacco notified by the Federal Government on 14th July 2021, need to be enhanced in line with the increase in Minimum Indicative Price (MIP) of all types of tobacco notified on 10th Feb 2022.
The ECC approved Rs.6 per KG new Cess rate of Flue-Cured Virginia (FCV) including plain Areas as well as sub-Mountainous Areas, Rs. 3.60 per KG for Dark Air-Cured Tobacco (DAC), Rs. 3 per KG white patta (WP), Rs. 5 per KG burley, Rs. 3 per KG of Naswar/snuff/Hookah and other Rustica Tobacco and its products.
Ministry of Communication submitted a summary of funds required for clearing liabilities of the Utility Companies/ Agency partners of the Pakistan Post Office Department (PPOD).
The collection of utility bills is one of the agency functions performed by PPOD and the amount thus collected was deposited in SBP’s Central Account-1. Liabilities to the tune of amount Rs. 62.33 billion have been accumulated till 31st March 2022. Rs. 25 billion had already been approved on 15-04-2022 for payment to utility companies.
The ECC after a detailed discussion granted permission to release funds amounting to Rs. 37.33 billion for clearing remaining outstanding liabilities of the utility companies /agency partners by the PPOD after verification of claimed amount by SBP.
The ECC also deliberated and approved a summary submitted by the Finance Division on policy for grant of honorarium with the direction that the proposal-v of policy may be redefined as the Chairman ECC in his discretion can award additional honorarium to the employees of Federal Government.
The ECC also approved supplementary/ Technical Supplementary Grants for a number of ministries including Rs. 40.5 billion for the Ministry of Commerce for payment claims cleared by SBP, under the previous government’s duty drawbacks schemes (DLTL/LTLD) of textiles and non-textile sectors, Rs. 2.214 billion in favour of the Federal Directorate of Education (FDE) & Rs. 300 million to National Commission for Human Development (NCHD) and Rs 3.960 billion to HEC under the World Bank project – Higher Education Development in Pakistan.
Similarly, ECC also approved Rs 70 million to Higher Education Commission for the project titled “Award of 3000 scholarships to students from Afghanistan,” Rs. 227.924 million in respect of Gilgit –Baltistan Council and its departments, Rs. 201.091 million in favour of the Ministry of Housing and Works, Rs. 1812.437 million and Rs. 13,785 million in favor of the Ministry of Interior, Rs. 81.791 million in favour of the Geological Survey of Pakistan, Rs 123.411 million in favour of the National School of Public Policy, Lahore, Rs. 578.11 million in favour of the Ministry of Climate Change and Rs 242.377 million for Pakistan Meteorological Department (PMD).
Source: Pro Pakistani