The Cabinet’s Economic Cooperation Committee (ECC) decided to cut taxes on the telecom sector and demanded talks with port terminal operators to reduce demurrage charges for containers of Afghan freight.
The extension of the contract with TAVANIR Iran for the purchasing of 104MW of electricity until 31 December, subject to vetting by the Ministry of Law & Justice, was also accepted at the ECC meeting, chaired by PM Finance Adviser Dr Abdul Hafeez Shaikh.
The meeting members have allocated 38 million cubic feet per day to Sui Southern Gas Company Ltd from three new Rehman 6 , 7 and 8 wells in Sindh, which are subject to legal approval.
Advisers to the Prime Minister (PM) on trade and structural changes and austerity were included among the ECC representatives attending the conference. Also present during the meeting were the special PM assistants on petroleum and revenue.
The general sales tax actually extends on telecommunications services at a rate of 19.5%, in addition to the advance income tax of 12.5% on other telecommunications services, including voice, SMS and MMS services , in addition to withholding taxes, etc. A sub-committee set up by the ECC some two months ago advocated the demand of telecom sector.
Another sub-committee set up by the ECC, comprising SAPM on tax, PM Advisor on structural reforms & austerity, Minister of Industry and Development and Trade Advisor, to establish a revised plan with a view to the final approval of the Federal Revenue Board’s answer.
For the waiver of demurrage charges on Afghan Transit Cargo / Afghan bound containers stuck at Karachi ports, the Ministry of Maritime Affairs proposed a review.