ISLAMABAD - The government on Tuesday offered sizeable one-time tax exemption on import of environment-friendly renewable technology as it approved withdrawal of customs and regulatory duties as well as sales and commercial taxes on solar panels. The Economic Coordination Committee of the Cabinet met here with Finance Minister Abdul Hafeez Sheikh in the chair and approved the request of Environment Ministry praying one-time exemption of taxes on renewable energy technologies. The reduction of duties shall make environment-friendly renewable energy technologies affordable to general public and commercial ventures, the ministry had proposed. It would also reduce dependence on imported fossil fuels. The environment proposal had also highlighted the growing environmental concerns, need to meet international obligations, and attract foreign investments, in addition to its possible direct positive impact on the ongoing energy crisis. According to the proposal approved by the ECC, the government would withdraw 5 per cent customs duty, 16 per cent sales tax, 2 per cent commercial tax, 1 per cent regulatory duty and 4 per cent income tax on solar PV panels/modules and LVD induction lamps Six-item agenda of ECC included implementation status of the decisions taken in the last ECC meeting, presentation of the FDI inflow and outflow, and steps to enhance FDI, exemption of taxes on renewable energy technologies, one-time exemption from custom duty granted under SRO (812)/1/99, update on sugar situation in the country, and allocation of gas to Thermal Power Station Quetta. The Committee took immediate restoration of gas for 30 days to fertilizer industry on top priority. The Committee also decided to work on direct tendering for urea import of .225m tons. The Chairman Trading Corporation informed the Committee that they are going to tender for the supply of 100,000 tons from the open market on March 7. At the same time Economic Affairs Division is engaged in talks with Arabian Basic Industrial Corporation for the timely supply of the urea. In this regard, a high-level delegation would depart for S Arabia today or tomorrow for the expeditious supply of the rest of the quantity of urea to Pakistan, after signing the Commercial Agreement. Federal Minister for Food and Agriculture Nazar Mohammad Gondal informed the Committee about the urgency of the requirement of the urea for the current Rabi crop. He said that the prices are escalating in the open market due to the shortage, and if the demand is not met before the sowing of the crop, it will have negative effects on the overall Rabi crop and on economy. In this regard, the committee asked the Federal Ministers for Industries and Production, Food and Agriculture, Finance Secretary, Commerce Secretary to jointly monitor the timely arrival of the consignment to Pakistani ports and onwards distribution to the farmers, and utilization of the 48,000 tons of urea stocked with TCP for the coming crops. The committee also approved allocation of 7-10 MMCFD gas to Quetta Thermal Power Station which was requested by the Ministry of Water and Power. The ECC also approved one-time exemption of custom duty granted under SRO 812(1)/99. The ministry of industries and production has requested to ECC of the Cabinet to issue explicit directives to the Federal Board of Revenue for allowing SBPL to sell the buses in question without surrendering the exemption from customs duty granted under SRO 812(1)/99 dated 01.7.1999, to facilitate release/ sale of the buses parked at SBPL depot since 2005. It may be recalled that Swede Bus company Limited (SBPL) had imported 32 Scania buses with Euro-II engines in 2003 for plying in Karachi under the Prime Ministers Urban Transport Strategy Plan, 1999 under SRO 812(1)/99 dated 01-7-1999, which provided exemption from customs duty.