Thursday November 30, 2023

FTO backs ECC decision on cheap electricity

By Our Correspondent
June 07, 2022

LAHORE:The Federal Tax Ombudsman (FTO) has removed obstacles to the implementation of the Economic Coordination Committee (ECC) decision.

The FTO has ordered immediate action on the decision of the ECC on providing cheap electricity. The ECC had directed the textile industry to provide cheap electricity and gas to boost exports, but the FBR did not act on time.

The failure of the FBR to act on the important decision of the ECC on increasing national exports has cost investors crores of rupees in a limited period. However, now the tax ombudsman has removed this obstacle.

According to details, the Economic Coordination Committee had issued letter No. ECC-308/27/2021 to provide cheap electricity, gas and RLNG to the textile industry to boost exports of value added products. The Ministry of Commerce had informed the FBR through letter No 9 (1) TID/12 2021 of the decision regarding this relief and its decision to make it conditional on the recommendation of APTMA, but timely action was taken by the FBR. Exports could not be increased due to non-compliance. As per the order of the Economic Coordination Committee, APTMA started sending its recommendations to the FBR, but all these cases remained stuck in the FBR for various reasons. Nishat Mills Ltd sent a complaint to FTO.

On the order of FTO, Advisor Sarfraz Ahmed Warraich summoned the FBR on 23 May 2022 under letter No. 1632/ISB/ST/2022 for delay in implementation of the decision of FB Economic Coordination Committee. Later, rejecting the position submitted by the FBR, he termed the extraordinary delay as mismanagement and ordered immediate action.

Acknowledging the decision of the FTO, the FBR has issued an order dated May 28, 2022 to remove the complaint of Nishat Textile Mills through Office Memorandum No. 57/2022. Fesco has been directed to provide cheap electricity to Nishat Textile Mills as directed by the Economic Coordination Committee. The decision will also apply to all other applications of this nature.