Import duty
on LPG abolished
POL prices to remain
intact for now
By Asad Cheema
ISLAMABAD—The Economic Coordination Committee (ECC) Wednesday decided to
abolish duty on import of Liquid Petroleum Gas (LPG) to improve its
supply and bring stability in prices in the country particularly in the
rural areas.
The meeting, which was presided over by Prime Minister ShaukatAziz was
informed that the collection of the revenue recorded an increase of
eighteen point nine per cent as compared to the corresponding period.
Briefing newsmen about the decisions of the meeting, Economic Advisor of
Finance Ministry Dr Ashfaq Khan said that the Prime Minister and ECC has
taken serious note of the role of the middleman in LPG business and OGRA
has been directed to strictly monitor the situation and check the wrong
doings”.
The OGRA has been further directed to check the prices and take
appropriate action against those found involved in illegal activities,
he said adding, CBR has already abolished 5 percent duty. The meeting
has also approved Reversible Energy Policy, which was prepared by the
Ministry of Natural Resources, he added. Dr Ashfaque said ECC has
provided an allocation of 340 mcf gas to Sawan Gas Field and 25 mcf to
Zargon for enhancing supply to meet the requirements of Quetta areas. He
said ECC has also decided to exempt sales tax on Public Transport
including CNG busses to promote good transport industry in the country.
He said “All busses of CBU and CKD conditions will be zero rated for
sales tax purposes improving import and supply of buses for people.”
He said additional incentives have been provided to investors for
promotion of medical tourism and chain stores in the country. The
feasibility in this connection will be available for primary businessmen
for one time only and resale of these items will be a criminal offence.
The ECC will approve the name of the company in this respect.
The Advisor to Ministry of Finance expressed satisfaction over the price
situation in the country and noted that prices of sugar and cement are
declining gradually. The price of sugar has reduced by Rs1/- during the
last one week while cement price has now reduced by 11.5 percent as
compared to last year’s prices. Cement is available at the average price
of Rs226/- per bag in the market. Its price at Lahore is Rs195/- while
its price at Quetta is Rs270/-, he added.
Dr Ashfaque said the improved supply situation has reduced the prices of
cement which is now 3033 million tonnes. The government had already
planned to increase its production to 48 million tonnes by 2009. The
overall cement sale has increased by 25 percent and its sale has been
recorded at 2 million tonnes during the month of November, he said
adding, the cement sale at domestic level has increased by 67 percent
while its export has been up by 75 percent. |
