ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Thursday allowed one-year extension for imposition of minimum tax on the turnover of corporate entities of distribution companies (DISCOs) and National Transmission and Dispatch Company (NTDC) of the WAPDA.
This decision has been taken to save electricity consumers from additional financial burden of the minimum tax that was to be indirectly collected from the consumers. Now onwards DISCOs and NTDC would enjoy exemption in payment of minimum tax for one further year. The Federal Board of Revenue (FBR) has made it mandatory for WAPDA to pay a minimum tax on the turnover, excluding price of electricity from tax year 2013.
An FBR order states that where corporatised entities of WAPDA distribution companies and National Transmission and Dispatch Company (NTDC) were required to pay minimum tax under section 113, the purchase of price of electricity shall be excluded from the turnover liable to minimum tax up to tax year 2013. A meeting of the Economic Coordination Committee was held under the chairmanship of Federal Minister for Finance Senator Mohammad Ishaq Dar at Prime Minister’s Office on Thursday. The ECC considered five agenda items submitted by various ministries/divisions.
The ECC further considered Ministry of Water and Power’s summary and approved in principle one-year extension in FBR’s SRO of February 21, 2008 on the grounds that NEPRA has directly determined tariff for the current year and, secondly, the burden should not be passed on to the consumers. The ECC decided to constitute a committee comprising secretaries of Ministry of Finance, Water and Power and FBR chairman to work out modalities for the said extension.
The ECC considered Cabinet Division’s report on implementation status of 968 decisions pertaining to the period from 25.3.2008 to 16.3.2013 and 6.6.2013 to 12.2.2014. The ECC was informed that so far 865 decisions have been complied with, which comes to 89% implementation status. The Cabinet Division submitted the Implementation Report to ECC in terms of Rule-24(5) of Rules of Business-1973. While reviewing the implementation status, ECC expressed satisfaction over 89% compliance report and directed Cabinet Division to seek implementation report for the remaining 103 decisions which related to various federal government ministries/divisions.
While considering the satisfactory implementation status of its previous decisions during the period under report, ECC directed the Aviation Division to submit its viable business and fleet expansion plan on fast track basis, while completing necessary consultative process with relevant GoP stakeholders. It directed the Commerce and Textile Industry Division to fast track implementation of its earlier decisions taken during January 2014 and submit compliance report in the next ECC meeting.
The meeting was informed that the CPI for the month of January 2014 declined to 7.9% as compared to 9.5% o f the same month last year. Further, in view of the fact GDP has grown prominently to 5.2% in first quarter of this financial year as against 2.9% of same quarter last year, IMF has revised upwardly its projection of GDP growth from 2.8% to 3.1%. IMF has expressed satisfaction as growth is picking up and economy is moving in the right direction.
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