ISLAMABAD - The Economic Coordination Committee of the Cabinet (ECC) on Thursday approved the proposal of the Federal Board of Revenue regarding continuation of the reduced rate of 0.3 percent WHT (withholding tax) on non-filers under section 236P of the Income Tax Ordinance, 2001, till February 29, 2016.
The ECC also approved proposal of Ministry of Water and Power regarding the supplemental agreement for projects in the private sector under the China Pakistan Economic Corridor (CPEC) framework agreement.
Under the arrangement a revolving account (equal to 22% of monthly invoicing) shall be opened and maintained by the power purchaser for which the Ministry of Finance will provide the guarantee to fund such revolving account in case the power purchaser fails to place and or maintain the required fund in such account.
The ECC had already approved the supplemental agreement proposal specifically for coal based power projects under the CPEC. However, the projects under the CPEC agreement also include other power projects that are required to implement on priority basis. Therefore, supplemental agreement needs to be available to all CPEC projects.
The ECC approved to extend the facility of supplemental agreement to all the projects enlisted or subsequently included in CPEC agreement by any amendment through mutual consent of the parties after approval of competent forums.
The ECC, which was chaired by Finance Minister Ishaq Dar, also discussed the proposal moved by the Ministry of Petroleum and Natural Resources for the Deregulation of the CNG prices. The ECC constituted a Committee comprising of Special Assistant to the Prime Minister on Human Rights, Secretary Petroleum, Secretary Finance, Secretary Law, Chairman FBR and Chairman OGRA. The committee will thoroughly look into all aspects of the proposal and give its recommendations to the ECC for a final decision.
It is worth mentioning here that Ministry of Petroleum and Natural Resources and Ministry of Law had conflicting viewpoints on the proposed deregulation of Compressed Natural Gas (CNG) sector with OGRA Amendment Ordinance 2009, which regulates CNG sector having lapsed.
ECC also approved the reallocation of 60MMCFD Mari shallow gas to its original allotees (Fauji Fertilizers, Fatima Fertilizers and Engro Fertilizers) with effect from 22nd February 2016.
ECC approved the proposal submitted by the Ministry of Industries and Production for granting waiver of the outstanding amount of Rs. 51.50 million as loan from the Federal Government to Shahdadkot Textile Mills as the unit has been liquidated and the Liquidator has settled the claims of Preferential creditors as per the availability of funds/sales proceeds. The approval for the liquidation process was granted by the Sindh High Court.