20000105

ECC meeting

T A MALIK

ISLAMABAD: The Economic Coordination Committee of the Cabinet on Tuesday approved changes in the tariff of six items to remove anomalies in the duty structure in order to provide protection to the indigenous industry.

The ECC which met with Finance Minister Shaukat Aziz in the chair, reduced the custom duty from 10 percent to 5 percent on VCM and removed 5 percent Central Excise Duty (CED) on import of sack craft paper and on local manufacturing of paper sack. The committee also reduced CED from 15 percent to 5 percent on polyester chips and from 10 percent to 5 percent on polyester filament yarn.

It was decided for the UFMC that if the C and F price does not exceed $ 800 per tonne then protective duty would be applicable in a graduated manner to maintain landed cost at not less than Rs 61,000 per tonne.

The committee decided to remove 5 percent CED on BOPP film if used in the film of a capacitor grade.

The meeting also allowed 25 percent concession on freight for the export of 100,000 tonnes of potatoes during the period January to September 2000.

The meeting was informed that the crop for the last two years has been excellent and the estimates for the next crop also indicate a reasonable surplus of exports. It was informed that new markets are being explored for the export of surplus potato.

Sources said that the decision would help increase the export of potato up to 150,000 tonnes.

The ECC decided that resident business ventures in the service sector engaged in providing services at ports by way of setting up and operating container or oil terminals as well as those infrastructure and service sector projects which are covered by the Investment Policy-1997, would be exempted from presumptive tax and be taxed on net income basis.

The ECC allowed the Ministry of Communication to sign implementation agreement with Alcatel Space Communication for the launching of telecommunication and broadcast satellite into the Geostationery Orbit. The entire expenditure on the project will be arranged by the foreign investor.

Sources said that the matters pertaining to export of sugar and rebate for sugar and cement were not discussed in the meeting. The sugar industry did not put statistical data on sugar production, consumption, surplus and availability of stocks, they added.

The meeting reviewed the prices and availability of essential items in the country and noted that there was a general stability in the prices of kitchen items and prices of 18 out of 21 kitchen items either declined or remained stable. The index of kitchen items decreased on average by 2.59 percent since July, 3, 1999.

The ECC is also monitoring the 18 selected items, which are generally consumed during Ramazan. Out of the 18 items, prices of 11 items (such as various fruits, potato and onion) have registered decline during the week ended on December 30, 1999 as against December 21, 1999. Prices of 5 items (such as Dal) remained unchanged while prices of two items (such as Baisan and yellow Dal) registered minor increase.

The reason for the decline in prices of 11 items include the better supply situation owing to the seasonal factors and better management and vigilance of the Price Monitoring Committee in district level. The committee was informed that stock position of POL, wheat and fertilizer was quite satisfactory in the country.