ECC approves revised Drawback of Local Taxes Scheme for five years

The Economic Coordination Committee of cabinet has approved revised Drawback of Local Taxes Scheme (DLTS) for the period of five financial years from July 1, 2021to June 30, 2026.

The meeting of ECC was held under the Federal Minister for Finance and Revenue Mr. Shaukat Tarin.

The Ministry of Commerce presented a summary on the Drawback of Local Taxes Scheme (DLTS) for the period 2021-26.

The ECC after detailed discussion approved revised/rationalized Drawback of Local Taxes Scheme (DLTS) for the period of five financial years from July 1, 2021to June 30, 2026. The Scheme will be subject to quarterly/periodic reviews to gauge its impact on export performance of sectors as well as exporting firms. The estimated financial impact will be Rs79.27 billion for FY 2021-22, however, actual claims till June 30, 2022 are estimated to be around Rs50 billion.

The Ministry of Industries and Production submitted a summary on the operation of Fatima fertilizer (Sheikhupura plant) and Agritech. The ECC after discussion approved the proposal for provision of indigenous gas to two SNGPL based urea plants latest by March 31, 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 a technical supplementary grant of Rs16 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.    

The 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 TSG worth Rs500 million in favor of the Ministry of Federal Education and Professional Training for National Commission for Human Development (NCHD), Rs681.046 million in favor of the Ministry of Housing and Works and Rs116.467 million in favor of Interior Division.