Oxygen gas, cylinders: Ministry seeks waiver of taxes, duties for another 6 months

ISLAMABAD: The Ministry of Industries and Production (MoI&P) has sought extension in waiver of taxes and duties on oxygen gas, oxygen gas cylinder, cryogenic oxygen tanks and oxygen concentrators/generators/manufacturing plants of all specifications and capacities for another six months.

Official sources told Business Recorder that on the summary moved by Industries and Production Division regarding exemption of duty and taxes on import of oxygen gas, cylinders and cryogenic tanks, the Economic Coordination Committee of the Cabinet on June 22, 2020 approved the proposal which was subsequently ratified by the Cabinet in its meeting held on June 23, 2020.

The incentives approved in the summary relating to import of oxygen gas, oxygen gas cylinder and cryogenic tanks were applicable from June 23, 2020 for the period of three months and expired on September 22, 2020.

Subsequently another summary regarding tax free import of cryogenic oxygen tanks (falling under respective headings of chapter 73 of Pakistan Customs Tariff) moved by Industries Division was approved by the Economic Coordination Committee on December 24, 2020 and subsequently ratified by the Cabinet in its meeting held on December 29, 2020 .

The incentives approved in this summary relating to import of cryogenic tanks have also expired.

The MoI&P argues that due to policy intervention and the above noted incentives, new oxygen manufacturing units were setup in the country enhancing the installed capacity of oxygen manufacturing from 487 M/T per day-to 790 M/T per day. The manufacturers have again approached MoI&P for duty-free import of oxygen gas, oxygen gas cylinder and cryogenic tanks in the country in order to ensure uninterrupted supply of oxygen gas at competitive rates.

National Command and Operation Centre (NCOC) in its meeting held on April 24, 2021 considered the current preparedness and future projections related to third wave of Covid-19, and recommended waiver of duty and taxes on import of oxygen gas, oxygen gas cylinder, cryogenic oxygen tanks and oxygen concentrators/generators/manufacturing plants of all specifications and capacities to producers of oxygen gas.

Keeping in view the decision of the NCOC, the MoI&P has proposed that duty and tax exemption may be granted to products/goods, ie, oxygen gas, oxygen gas cylinder, cryogenic oxygen tanks and oxygen concentrators/generators/manufacturing plants of all specifications and capacities under respective Harmonized System (HS) Codes for a period of 180 days to cope with the third wave of Covid in the country. The exemption will be allowed in Customs Duty, Additional Customs Duty, Sales Tax and Withholding Tax.

Copyright Business Recorder, 2021