Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved Drawback of Local Taxes Scheme (DLTS) for the period of five financial years from July 1st 2021 to June 30th, 2026.
Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting which, among others, was attended by Federal Minister for Planning, Development & Special Initiatives, Asad Umar; Federal Minister for National Food Security and Research, Syed Fakhar Imam; Adviser to PM on Commerce and Investment, Abdul Razak Dawood, federal secretaries, Governor SBP, Chairman Planning Commission and other senior officials.
The summary related to revised/rationalized DLTS for 2021-26 was presented by Ministry of Commerce before the cabinet committee, according to press statement issued by the finance ministry. The scheme would be subject to quarterly/periodic reviews to gauge its impact on export performance of sectors as well as exporting firms. According to the statement the estimated financial impact will be Rs. 79.27 billion for FY 2021-22, however, actual claims till 30th June, 2022 are estimated to be around 50 billion.
Meanwhile, Ministry of Industries and Production submitted a summary on the operation of Fatima Fertilizer (Sheikhupura Plant) and Agritech. The committee approved the proposal for provision of indigenous gas to two SNGPL based urea plants latest by March 31st, 2022, resulting in saving of funds to be utilized on provision of RLNG to both these plants and continued operation throughout the year.
The ECC further directed to expedite the process of shifting the plants on system gas within one month. The ECC also approved technical supplementary grant of Rs.16 billion for payment of SNGPL dues for the month of February and expected claims for the remaining months of March, April and May during the CFY 2021-22. Ministry of Industries and Production submitted another summary on provision of funds to Heavy Electrical Complex (HEC) to pay liabilities on account of markup to Bank of Khyber (BoK).
The ECC approved Rs23.309 million as markup for the period of October 2021 to March 2022. The ECC also approved supplementary grants including Rs. 500 Million in favour of Ministry of Federal Education and Professional Training for National Commission for Human Development (NCHD); Rs. 681.046 million in favour of Ministry of Housing and Works and Rs. 116.467 million in favour of Interior Division.