STAFF REPORT ISB: The Economic Coordination Committee of the Cabinet (ECC) here has considered the proposal for exempting LNG import from Gas Infrastructure Development Cess (GIDC) and GST.
The proposal was submitted by the Ministry of Petroleum and Natural Resources for exempting LNG import from GIDC and GST.
Federal Minister for Finance Senator, Muhammad Ishaq Dar chaired the meeting of the ECC in Islamabad at the Prime Ministers Office.
The chair after deliberations accorded exemption from GIDC as it was not applicable on imports as recommended by the committee under the convener ship of secretary Finance with secretary PandNR and chairman FBR as members.
It was, however, decided that 5 per cent GST on LNG import would be levied in any case.The Finance Minister said that the decision is taken with a view to facilitate the general public and encourage investment in the sector.
“We cannot allow total exemption from general sales tax because we want to promote tax culture in Pakistan. If the business is thriving, there is no harm in contributing a small percentage to the exchequer,” he remarked.
The ECC also gave consent to the proposal by Ministry of Industries and Production for directing Trading Corporation of Pakistan to ensure procurement of 0.185 Million Tons of Urea Fertilizer under SABIC facility by December 15, 2014 for the upcoming Rabi crop.