ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Thursday decided to extend the time period of concessional rate of withholding tax of 0.3 percent on banking transactions for non-filers up to 7th November 2015.
The ECC chaired by Finance Minister Ishaq Dar has decided that concessionary rate of 0.3 percent withholding tax on banking transactions would continue till November 7. . It was further decided that in the event that the National Assembly extends the Income Tax Ordinance 2015, the reduced rate will remain applicable till 15th November 2015.
The government had already announced extension of one month in payment of concessional rate of 0.3 percent withholding tax on all banking instruments on expiry of Ordinance on September 30. The 0.3 percent tax would remain applicable till October 31, 2015. The government in budget 2015-16 had imposed 0.6 percent withholding tax on banking transactions for non-tax filers. However, traders across the country reacted on the tax, resultantly government reduced the WHT to 0.3 percent from 0.6 percent.
The ECC also approved the issuance of revised GoP guarantees of up to Rs.37,650 million for 425MW Nandipur Power Project. The guarantee have been issued to a syndicate of local banks (HBL, NBP, UBL, Askari Bank, Bank Alfalah and BoP), against their financing for the project. The revision of guarantees will enable the syndicate to extend the period of financing facility till 1st June 2016.
The top economic decisions making body of the country, ECC, has also approved textile package already agreed between government and representatives of All Pakistan Textile Mills Association (APTMA). The ECC has approved to impose a 10 percent regulatory duty on imports of cotton yarn, grey and processed fabric, particularly from India in order to protect the local industry. The Chairman FBR informed the Committee that the proposal was based on extensive consultations with the relevant stakeholders.
The ECC considered and gave approval for the provision of 64,000 Metric Tons of wheat to the United Nations WFP for TDPs of FATA and KP. The said quantity costing Rs. 2.569 billion will be distributed till December 2015.
ECC also granted approval for the issuance of sovereign guarantee against financing facility of PKR 18 billion for Thar-Matyari Transmission Line project. The project will transmit electricity produced from Thar Coal based 1200MW power plant to the national grid.
ECC granted approval for extension of GoP guarantees for Rs 15 billion term financing facility from the National Bank of Pakistan for Power Holding (Private) Limited. The guaranteed facility has been in place for the last two years and its tenure has been extended for another two years.
ECC also approved provision of sovereign guarantees for establishment of letters of credit for setting up of two 1000-1200MW (gross) Combined Cycle Power Plants at Haveli Bahadar Shah, Dist Jhang and Balloki, Dist Kasur.