ISLAMABAD: In order to incentivize pioneer industries in the country, the Economic Coordination Committee (ECC) has approved amendment to Section 19 of the Customs Act 1969, Sales Tax Act 1990 and Income Tax Ordinance 2001 for providing enabling legislation to extend incentives under the Pioneer Industry Policy.
The ECC considered issues in the applicability of SRO. 1067(I)/2017 due to limited human resource and capacity constraints of Department of Plant Protection (DPP).
It was decided that the import of various food items as listed in SRO. 1067(I)/2017 would only be allowed at Karachi sea port, and land border posts at Sost, Chaman, Torkham, Taftan, Wagha, Peshawar and Quetta till the required human resource with necessary technical capacity is raised by the DPP for handling inspection work at other ports of the country.
The meeting discussed the impact of the Prime Minister’s Export Package towards enhancement of country’ exports and noted that the Incentive Package has significantly contributed towards turnaround in exports in FY 2018 which had been continuously declining since FY 2014.
It was informed that during July-April 2017-18, the exports have registered an increase of 14% compared with the corresponding period of the previous year. In order to maintain growth momentum, improve competitiveness and incentivize investment in export-oriented production, it was decided to continue Export Incentive Package.
It was also decided to extend Drawback of Local Taxes and Levies (DLTL), on the same terms and conditions, for the commercial and manufacturer exporters for another three years.
The package would include the existing and new non-textile sectors allowing them DLTL at the reduced rate. The meeting also discussed the issue of sub-standard CNG cylinders/kits, flourishing roadside CNG conversions by unskilled workers and enforcement of inspection/testing of CNG Vehicle cylinders and kits.
The ECC decided to relax ban on import of CNG Cylinders and kits; to allow authorized dealers to import CNG Cylinders/Kits and to reduce Custom duties on imported kits and cylinders.
The ECC also permitted Inter State Gas System (Pvt) Limited to construct pipeline connecting the LNG regasification terminal at Sonmiani named Bahria Foundation LNG Terminal Project to Nawabshah.
The pipeline would be capable of transporting 700 to 1200 MMCFD high pressure Liquefied Natural Gas which shall further be transported to the north of the country.
The project will play a key role in mitigating energy crises and creating job opportunities. A proposal of petroleum division for adjustment of margin on LNG to mitigate higher incidence of tax on LNG was accepted by the meeting. The ECC also allowed Pakistan LNG Limited (PLL) to use the existing GoP guarantee of US$ 150 million for issuance of Letter of Credit/Standby Letter of Credit facility. The facility would enable PLL to procure LNG on mid to long-term basis.
