ECC approves Rs1000 million tax exemptions on oxygen, oxygen gas cylinder, cryogenic oxygen tanks for the health sector
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved Rs1000 million 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 to copy with the fifth wave of Covid in the country.
Presently, there is 3% Customs duty, 2% additional Customs duty, 17% sales tax and 2% withholding tax on the oxygen, similarly, there is 20% CD, 7% ACD, 17% sales tax and 5.5% withholding tax on oxygen cylinders and 3% CD, 2% ACD, 17% sales tax and 5.5 percent withholding tax on cryogenic tanks or vessels.
Sources said that FBR in December 2021 has not supported the proposal for extension the tax exemptions for further one year due to having revenue impact of Rs1000 million, however, this ministry has received two requests from M/s Maan Enterprises and M/s Denim international whereas NCOC has also issued a letter to ministry of Industries to maintain sufficient reserves of medical oxygen by all producers (80% 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.
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 Rs. 12.345 billion on cost sharing basis among the Federal and Provincial Governments on 50:50 basis.
The ECC also considered and gave principal approval on a summary presented by the Ministry of Defence Production for extending the Defence Credit Line Facility of $50 Million to Sri Lanka to enhance bilateral defence and security cooperation.
The Ministry of Industries and Production submitted a summary on grant of arrival/priority berthing of TCP’s Urea vessels at Karachi Port Trust (KPT). Considering the urgent requirement of Urea in the country, the ECC approved the proposal.
ECC also considered and approved a summary submitted by the Finance Division on expansion of the Kamyab Pakistan Programme throughout Pakistan.
The ECC also considered and approved a number of proposals of Supplementary/Technical Supplementary Grants submitted by different Ministries/Divisions.
Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister of Planning, Development and Special Initiatives Mr. Asad Umar, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Secretaries and senior officers attended the meeting.
