Briefs

Briefs

Govt loses Rs20mln daily to gas theft

ISLAMABAD: Natural gas worth around Rs20 million is being pilfered in Karak district of Khyber Pakhtunkhwa (KPK) province on daily basis, a statement said on Monday. 

“The gas is being stolen in connivance with local administration and police,” Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told the subcommittee of Senate Standing Committee on Petroleum and Natural Resources. 

“Whenever the gas company disconnects the illegal connections, they are restored in the supervision of the deputy commissioner and police.”  Abbasi said, the ministry had taken up and discussed the matter with KPK Chief Minister Pervez Khattak in detail but to no avail.

The committee meeting, chaired by Fateh Muhammad Muhammad Hassani, expressed astonishment over the illegal activity and summoned KPK’s Chief Secretary, Home Secretary, Inspector General of Police and Deputy Commissioner Karak in the next meeting to explain the situation. Responding to Abbasi’s complaint, Hassani assured the petroleum ministry of all-out assistance in putting an end to the large-scale gas theft.

Zero-rated sales tax facility suspended

By our correspondent

KARACHI: The Federal Board of Revenue (FBR) has suspended the facility of zero-rated sales tax to at least nine textile units, which was granted on the consumption of electricity.

In a Sales Tax General Order (STGO) issued on Monday, the FBR withdrew the facility on the charges of misuse and directed the utility company to charge normal rates of sales tax at 17 percent from these textile units.

All the units found in misusing the facility are registered with the Regional Tax Office (RTO), Faisalabad.

The FBR directed the RTO Faisalabad to submit a report in respect of action taken or recovery made for the misuse of the facility by the units.

The tax authorities have launched monitoring of the zero-rated facility granted through consumption of electricity and gas to the textile sector.

The facility has been granted in order to reduce the cost of manufacturing and enhance exports.

Earlier on January 19, 2017, the FBR had terminated the facility on electricity consumption of eight textile units registered with the RTO Karachi.

Zubair welcomed as Sindh governor

News Desk

KARACHI: Prominent business leader and former federal minister Captain Haleem Siddiqui has welcomed the appointment of Muhammad Zubair as Sindh governor, a statement issued by his office said on Monday.

Capt Siddiqui said that Zubair is a highly qualified person and has a good family, political and social background. He would prove to be a better governor of the province that was longing for a good governace and peaceful atmosphere.

He expressed the hope that the newly-appointed governor would resolve several issues being faced by the province, including permanent solution of the law and order situation, civic problems and restoration of commercial and industrial peace.

Germany opposes unilateral tariffs 

BERLIN: Chancellor Angela Merkel said on Monday she was opposed to unilateral steps to impose tariffs on imports, adding that should the new U.S. administration back such protectionist measures Germany would have to decide how to respond.

U.S. President Donald Trump has warned German car companies that he would impose a border tax of 35 percent on vehicles imported to the U.S. market. His top trade adviser has accused Germany of using a "grossly undervalued" euro to gain advantage over the United States and its own EU partners.

"We have to see what the U.S. administration does and then we have to decide whether to react or not to react," Merkel said when asked about the threatened tariffs.

"I have often said that I support multilateralism and mutual trade agreements. I believe the world mastered the financial and banking crisis because we reacted together in the G20."

Merkel pointed out that the United States was the most important single trading partner of German companies and that Germany wanted to keep close business ties with America.

"It´s in the German interest to ideally strengthen the similarities that both sides share from our side, from the cooperation of intelligence agencies to issues of defence," Merkel said.        

Goldman sees risks for US economy

NEW YORK: A fiscal boost to the United States is more likely in 2018 than this year, according to Goldman Sachs economists, as "the balance of risks is somewhat less positive" one month into the new year and as U.S. President Donald Trump´s growth-boosting agenda could be offset by negative effects of restrictions on trade and immigration.

Following the election, the positive shift in sentiment among investors suggested that the probability of tax cuts and easier regulation was higher than the probability of meaningful restrictions to trade and immigration, according to the note by economist Alec Philips dated Feb.3. However, one month into the year, the balance of risk is "somewhat less positive in our view.

"Recent difficulties that congressional Republicans have had in repealing Obamacare "does not bode well for reaching a quick agreement on tax reform or infrastructure funding," the note said. That "reinforces our view that a fiscal boost, if it happens, is mostly a 2018 story."

Goldman said while bipartisan cooperation looked possible on some issues following the election, the "political environment appears to be as polarized as ever, suggesting that issues that require bipartisan support may be difficult to address."

Goldman also said Trump is likely to follow through on campaign promises on trade and immigration, "some of which could be disruptive for financial markets and the real economy. "Tax reform will probably "take a while to enact and will probably be scaled back relative to what House Republicans and President Trump have proposed," the note said. Goldman said it expects a fiscal expansion of around 1 percent of GDP, largely through tax cuts starting in 2018.

China-made plane to debut in 2017

Beijing: China´s first homegrown big passenger plane will make its maiden voyage in the first half of this year, state media said Monday, as the country seeks to challenge foreign giants Airbus and Boeing.

The C919 narrow-body jet is expected to "realise its blue-sky flight dream" in the first six months of 2017, the People´s Daily newspaper reported, with the installation of onboard systems almost completed.

The plane, produced by the state-owned Commercial Aircraft Corp of China (COMAC), was originally scheduled to make its debut journey in 2015, but the date was repeatedly pushed back as it underwent additional testing and certification.

For China, the aircraft represents at least eight years of effort in a state-mandated drive to reduce the country´s reliance on European plane maker Airbus and Boeing of the United States and compete directly against them for market share.

The first C919 rolled off the assembly line in November 2015 after workers spent more than a year putting together the single-aisle aircraft, which can seat 168 passengers.

It is hoped the plane will take market share in the lucrative segment from the Boeing 737 and Airbus A320.