ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the removal of two percent additional customs duties on 152 tariff lines to help industries get cheap raw material and lessen their cost of doing business.
The ECC meeting presided over by the Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh, was submitted a summary by the Ministry of Commerce with regard to removal of additional two percent custom duties, mostly on raw material, under the National Tariff Policy 2019-2024 on Thursday.
The ECC approved the summary but directed that while planning important incentives for businesses and industries, the budget cycle must be observed to ease implementation during the financial year.
An official said that working on removal of additional two percent customs duties on 152 tariff lines was completed by the Tariff Policy Board two months ago - end of October 2020.
However, he did not explain the likely or anticipated revenue impact of removal of additional customs duties.
On a summary moved by the Ministry of Maritime Affairs for awarding contract regarding infrastructure facilities, sewerage system, and water supply system in Gulshan-e-Benazir Township Scheme (GBTS) at Port Qasim Authority, Karachi, the ECC approved in principle, the projects in conformity with the PQA Act, 1973, and directed the Ministry of Maritime Affairs to settle the modalities for the award of contracts as per rules.
The ECC also approved the Ministry of National Food Security and Research’s summary regarding provision of additional quantities of wheat to the Khyber-Pakhtunkhwa, the AJ&K, and the Utility Stores Corporation (USC).
The ECC approved additional wheat allocation of 200,000 metric tons for the KP, 80,000 metric tons for the AJ&K, and 220,000 metric tons for the USC from PASSCO.
The ECC also approved the import of additional wheat to buffer up stocks till the arrival of fresh crop, after seeking detailed input from all concerned. The ECC deferred the summaries related to the Textile and Apparel Policy (2020-2025) and the National Freight and Logistics Policy (NFLP) for a comprehensive consultation process with key stakeholders ahead of taking there up in the next meeting of the ECC.
The ECC approved the following technical supplementary grants during the meeting that included; (a) Rs30 million for the Ministry of Defence for the purchase of spare parts for helicopters for the government of the Khyber-Pakhtunkhwa (KP); (b) Rs400.020 million for the Ministry of Law and Justice to establish additional courts in compliance with the orders of the Supreme Court; (c) Rs2.268 billion for the Higher Education Commission for completion of various Disbursement Linked Indicators (DLIs) under the IDA credit facility.
The meeting was attended by Federal Minister for Interior Sheikh Rasheed Ahmed, Minister for Privatisation Mohammad Mian Soomro, Minister for Planning, Development, and Special Initiatives Asad Umar, Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, SAPM on Revenue Dr Waqar Masood, SAPM on Petroleum Nadeem Babar, and Minister for National Food Security and Research Syed Fakhar Imam. Governor State Bank of Pakistan (SBP) Dr Reza Baqir attended the meeting through a video link.
Copyright Business Recorder, 2021
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