ISLAMABAD: 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 release of funds for SSGC for gas supply to Pakistan Steel Mills (PSM). It was submitted that due to 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 Rs80 million (Approx.). The ECC after discussion allowed release of Rs620.85 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 Rs6 per KG new Cess rate of Flue Cured Virginia (FCV) including plain Area as well as sub-Mountainous Area, Rs3.60 per kg for Dark Air-Cured Tobacco (DAC), Rs3 per kg white patta (WP), Rs5 per kg burley, Rs3 per kg of Naswar/snuff/Hookah and other Rustica Tobacco and its products.
Ministry of Communication submitted a summary on 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 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. Rs25 billion had already been approved on 15-04-2022 for payment to utilities companies. The ECC after detailed discussion granted permission to release funds amounting to Rs37.33 billion for clearing remaining outstanding liabilities of the utility companies /agency partners by the PPOD after verification of claimed amount by SBP.