ECC approves GST, customs exemption on Karachi Circular Railway

The Economic Coordination Committee (ECC) of the Cabinet Wednesday approved exemption of all foreign and local components of the Karachi Circular Railway from imposition of general sales tax, customs duty and other federal levies in order to ensure financial viability of the project.

To facilitate and accelerate the project of Karachi Circular Railways, Ministry of Railways moved a summary to get the approval of the ECC for waiver of general sales tax and customs duty on the loan component of the project.

The KCR is a mega project of national importance and aims to provide modern rail-based commuter service to the citizens of Karachi with a total cost of US $ 2.6 billion. ECC was informed that Japan International Cooperation Agency will provide US $ 2.4 billion on a 0.2% mark up payable in 40 years, including 10 years of grace period.

The ECC, presided by Minister for Finance and Economic Affairs, Senator Saleem H. Mandviwalla, approved the request for grant of inland freight subsidy of Rs.1.75 per kilogram for 1.2 million MT of sugar allowed earlier for export by the ECC.

The Committee was informed that there is slow pace in sugar export and keeping in view the industry’s liquidity position for paying dues to farmers inland freight subsidy of Rs.1.75 per kilogram may be extended to the export of total quantity of 1.2 million MT of sugar instead of 0.895 million MT allowed for export through an earlier decision of the ECC.

The ECC approved a summary of Finance Division to solicit the approval for equity investment in Democratic Republic of Congo.

The State Bank of Pakistan evaluated the proposal and recommended that M/s Lucky Cement Limited may be allowed to remit US $ 40 million on account of equity investment in connection with establishment of cement manufacturing plant through incorporation of Joint Venture Company with the condition that the company will manage foreign exchange requirements from the open market and the outflow will be coordinated with the State Bank of Pakistan.

In order to provide fiscal relief and to rehabilitate the economic life in Khyber Pukhtoonkhawa, FATA and PATA, the ECC approved that the areas of Hub and Hattar may be included in the ambit of DTRE scheme available to ghee manufacturers-cum-exporters based in KP and Balochistan.

The ECC further approved withdrawal of the condition of export performance of last four years plus 20 percent enhancement. The ECC allowed the manufacturers-cum-exporters of ghee to acquire the quantity of raw material for manufacture and export of 1000 MT of ghee only. The summary for subject approval was forwarded by Federal Board of Revenues.

The ECC approved “Framework for Power Cogeneration 2013 (Bagasse/Biomass)” as an addendum to the Renewable Energy Policy 2006. This framework shall be effective for all high-pressure cogeneration projects utilizing bagasse/biomass. The ECC also approved extension of Renewable Energy Policy 2006 for an additional five years. The summary was moved by Ministry of Water and Power.

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Posted by Tahir Khan on Mar 6 2013. Filed under Business, Latest News, National, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.