The Economic Coordination Committee (ECC) of the cabinet has approved Rs1 billion duty and tax exemptions on oxygen gas, oxygen gas cylinder and cryogenic oxygen tanks for the health sector up to June 2022.
The meeting of ECC was held under the chair of Federal Minister for Finance and Revenue Shaukat Tarin on Thursday.
Sources said that the ministry of industries and Production has proposed ECC to grant duty and tax exemptions to oxygen gas, oxygen gas cylinder and cryogenic oxygen tanks for the health sector for a period of twelve months on expiry of previous exemptions in November, 2021.
Sources said that FBR in December 2021 did not support the proposal for extension of the tax exemptions for further one year due to having revenue impact of Rs1 billion however ministry has received two requests from Maan Enterprises and Denim international whereas NCOC has also issued a letter to ministry of industries to maintain sufficient reserves of medical oxygen by all producers (80 per cent of total storage) at all times to meet the demand of medical oxygen in coming days.
As per the handout issued by the finance division ECC approved duty and tax exemption on above-mentioned products for the health sector up to June 2022 to cope with the fifth wave of Covid in the country.
In addition, the ECC after deliberation on a summary presented by the Ministry of Industries and Production on fixation of imported urea price and approved the cost estimates for import of urea amounting to Rs12.345 billion on cost sharing basis among the federal and provincial governments on 50:50 basis.
