KARACHI: The government on Saturday agreed to provide re-gasified liquefied natural gas (RLNG) to export-oriented sectors in Sindh at weighted average cost for another year.
“Energy minister Hammad Azhar agreed to supply RLNG at $6.5 per MMBTU to export-oriented industries of Sindh,” said a Karachi Chamber of Commerce & Industry (KCCI) statement, issued after a meeting with Shaukat Tarin, minister for Finance and Revenue.
Minister for Energy Hammad Azhar, advisor to PM on Commerce Abdul Razak Dawood, chairman Federal Board of Revenue Ashfaq Ahmed and other senior officials of finance ministry and FBR also accompanied Shaukat Tarin at the meeting.
The statement said the ministry of Finance “will sanction subsidy and relevant notification will also be issued”.
Minister Azhar said energy ministry will also convene a meeting to discuss KCCI’s concerns over gas crises in winter season so that they could explore ways and means for smooth supply of gas to industries/consumers of SSGCL in winter season.
“MD SSGC will also be advised to hold a meeting with KCCI in this regard,” he added. PM’s advisor Dawood said the government was considering waiver of duty on import of cotton yarn.
The KCCI proposed to reduce concessional rate of 0.1 percent to 0.01 percent on traders/ brokers of cotton yarn under SRO.333 (I) 2001 has been taken into consideration in the larger interest of value-added exports.
Dawood said drawback on local taxes and levies (DLTL) will either continue with same rate “or the government may increase the rate of drawback whereas the old income tax claims will also be refunded at the earliest”.
Finance minister Tarin, in response KCCI's concerns expressed over amendment in tax laws through Tax Laws (Third Amendment) Ordinance 202, has assured that government would review the matter and look into the possibility of re-examining the term ‘non-filer’ and ‘under-filer’ in consultation with stakeholders whereas in the meantime, no one will suffer as the Federal Board of Revenue (FBR) will not take the action directly.
Tarin said the FBR will share relevant data with chambers and also upload the same on its website.
“The government intends to take help of artificial intelligence and assessment will be done through third party while appropriate time of 90 days will be provided to non-taxpayers for settlement,” he added.
The KCCI’s delegation was led by chairman Businessmen Group and former president KCCI Zubair Motiwala, comprised of vice chairmen BMG Haroon Farooki & Jawed Bilwani, general secretary BMG AQ Khalil and president KCCI Muhammad Idrees.
Chairman FBR Dr Ashfaq Ahmed assured the KCCI that the government will review the matter pertaining to CNIC requirement and three percent tax which KCCI believes should not be mandatory but optional as three percent tax on sales to unregistered persons was already being collected hence there was no need for demanding CNIC.
In response to problems being faced because of the condition to put invoice and packing list inside imported container or consignment, the lawmakers assured to review KCCI’s proposal that the bank should only receive document when invoice and packing list is attached with the documents and consignment should be released with the provision of invoice and packing list from customs.
It was also assured that the government will also look into KCCI’s proposals to amend provision under S. No.4 in which a new section 114B has been inserted in Income Tax Ordinance 2001, providing discretionary powers to FBR to issue General Orders to disable mobile phones/SIMS, disconnect electricity and gas connection etc. to enforce filing of returns by the persons not appearing on the ATL.
The KCCI, in this regard, has proposed the provision may be amended to substitute the words “Persons not appearing on ATL” with “Unregistered Persons” to achieve the purpose of broadening of tax-base.