ECC directs TCP to import 500,000 MTs of white sugar
ISLAMABAD-Economic Coordination Committee (ECC) of the Cabinet on Wednesday directed Trading Corporation of Pakistan (TCP) to import white sugar up to 500,000 MTs (Metric Tonnes) if and when needed during the current season.
Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh, chaired the meeting of Economic Coordination Committee (ECC) of the Cabinet. Ministry of Industries and Production presented a summary before ECC for import of sugar to reduce upward pressure on prices of sugar and to buffer up carryover stocks before the arrival of the fresh crop. The ECC approved the reduction of withholding Income Tax on commercial import of white sugar and raw sugar from 5.5 per cent to 0.25 per cent and the removal of Value Added Sales Tax on import of white sugar. The reduction in taxes will incentivize the sugar mills for import of 300,000 MTs Raw Sugar up to 30th June 2021. ECC further directed Trading Corporation of Pakistan (TCP) to import white sugar up to 500,000 MTs if and when needed during the current season.
Ministry of Religious Affairs and Interfaith Harmony presented a summary for scaling up of ‘Road to Makkah Pilot Project’ from Islamabad airport to two more cities i.e. Karachi and Lahore to facilitate Hujjaj for performing Hajj under Government Scheme. One of the pre-conditions for scaling up of Road to Makkah Project was a grant of special exemption on the import of technical equipment in Pakistan by the Kingdom of Saudi Arabia (KSA). ECC decided that FBR will hold a separate consultation with the Ministry of Religious Affairs and Interfaith Harmony to work out details and the matter would be placed before next ECC for approval. Aviation Division presented a summary before ECC to reconstitute a high powered committee headed by the Deputy Chairman Planning Commission including Secretary Finance, Secretary Aviation and Secretary Law justice Division to deliberate on financial challenges faced by the Roosevelt Hotel, New York, USA. The Committee approved the above request.
Ministry of Communication Secretary presented a detailed National Freight and Logistics Policy (NFLP) framework before ECC. Honourable Members of the ECC appreciated the efforts made by the Ministry in drawing up a comprehensive draft policy and directed Ministry of Communications to identify and segregate actionable items which fall under its domain and place before next ECC for final approval. The proposals of other Ministries and Provinces would be considered separately under some institutional arrangement at an appropriate forum. ECC also approved a draft policy on equity investment abroad by residents/firms, which caters to the needs of the business community and aims to improve the ease of doing business, promote exports, facilitate resident companies in raising capital from abroad. It will also fulfil the legitimate investment needs of the individuals. Ministry of National Food Security and Research presented a summary to authorise TCP to make immediate arrangements for the import of 300,000 MTs of wheat through the tendering process as ratified by the Cabinet and nominate PASSCO as a recipient agency for the imported wheat to replenish its stock as needed. ECC accorded approval as requested by the Ministry. ECC also approved another summary by the Ministry of National Food Security and Research regarding the allocation of 60,000 MTs of wheat for Food Department, Balochistan from PASSCO’s existing stock on the subsidized rate as per previous practice.
ECC also decided that gas rate of Rs772/MMBTU will apply to Agritech and Fatima Fertilizer post-November 2020 till January 2021 as requested by the Ministry of Industries and Production. ECC accorded approval for the exemption of Sales Tax @17 per cent and additional sales tax @3 per cent on the import of 52 fire fighting vehicles by Sindh Infrastructure Development Company Limited (SIDCL). Ministry of Communications updated ECC regarding progress made in conversion of National Highway Authority (NHA) loans into Government loans as per last ECC held on 2 December 2020. NHA requested for 9 months to prepare a commercially viable business plan in consultation with other Ministries. NHA’s debt restructuring would be linked with the outcome of the said business plan. ECC also accorded approval of the proposal that outstanding mark-up accrued till date on all CDL/FRL on NHA would be capitalized as on 30 June 2020. There will be a moratorium on further accrual of mark-up till the finalization of the business plan.
ECC approved the technical supplementary grant of Rs10 million for the purchase of Spare Parts for the helicopter maintenance by HQ Frontier CORPS Balochistan, Rs67,459,100 to Ministry of Interior for the payment to hired solicitors for pursuing cases in the UK, Rs81.40 million to Ministry of Law and Justice for the establishment of 3 new Courts, Rs16.628 billion to the Ministry of Planning Development and Special Initiatives for the completion of 21 schemes of Sindh Infrastructure Development Company Limited, Rs82.5 million for the completion of the Project titled “1000 Industrial Stitching Units all over Pakistan” by Ministry of Industries and Production and Rs300 million for the completion of the Project titled “KA7151 Establishment of 132 KV Grid Station at Bin Qasim Industrial Park” by Ministry of Industries and Production.
A draft Textiles and Apparel Policy, 2020-25 by the Ministry of Commerce was postponed to the next ECC for a detailed discussion.
Article source: https://nation.com.pk/21-Jan-2021/ecc-directs-tcp-to-import-500-000-mts-of-white-sugar