ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has endorsed the proposal of the Federal Board of Revenue (FBR) for extension in the period of applicability of existing reduced withholding tax rate of 0.4 percent for non-filers of income tax returns from January 1, 2017 to March 31, 2017.
The ECC, under the chair of Finance Minister Senator Ishaq Dar, has also allowed exporting 225,000 metric tons of sugar after ascertaining that there would be 1.23 million metric tons of surplus sugar available in the country.
The ECC also decided that the Ministry of Commerce should ensure that there are adequate checks and balances available to maintain the price stability in the domestic market at the current level. In case the domestic price stability is disturbed, the commerce ministry would bring summary to consider cancelling the export permission to sugar exporters.
Unlike previous years, it was decided that there would be no freight/export rebate payable by the government to sugar exporters on such exports. Furthermore, only those mills will be allowed to export which have cleared outstanding dues of farmers relating to the last season and have started crushing at full capacity.
Pakistan Sugar Mills Association (PSMA) had recommended the Ministry of Commerce to give permission to export 0.5 million tons of sugar by March next year. The PSMA has noted that sugar would be on surplus almost 1.7 million tonnes on September next year, as the total quantity of the commodity will be 6.7 million tons against the consumption of almost 5 million tons.
However, Ministry of Commerce has agreed to support export of 225,000 tons of sugar, which was approved by the top economic decisions making body of the country, the ECC.
The Finance Division apprised the ECC that State Bank of Pakistan’s (SBP) principal debt amounting Rs54.460 billion outstanding against Zarai Taraqiati Bank Limited (ZTBL), as on December 31, 2015, is being converted into redeemable preference shares carrying a profit of 7.5 percent per annum, redeemable in 10 years in one bullet payment on December 31, 2025. In this regard, the ECC of the Cabinet approved issuance of guarantee of Rs54.460 billion by the government of Pakistan in favour of SBP for principal debt of the preference shares and returns thereon.
