ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Wednesday allowed urea import and rationalisation of tariff on import of vehicles and other items.
The ECC meeting was chaired by Federal Minister for Finance and Revenue Shaukat Tarin. ECC considered the summary of Ministry of Industries and Production for the import of urea from China by Trading Corporation of Pakistan (TCP). The ECC after deliberation allowed import of 50,000 MT of urea on GoG basis with People’s Republic of China on immediate basis subject to clearance from the PSQCA. TCP was also tasked to negotiate price with Chinese supplier authorized by Govt of China for further import of urea.
Earlier, officials in ministry of industries and production informed that government had decided to import 0.1 million metric tons of urea from China. However, the ECC has allowed only 50,000 MT of urea. According to the ministry, there is an ample amount of urea available for Rabi season as the government has arranged for additional production of 2,25,000 tons over last year by extending the operations of Northern plants and FFBL till February. In addition to these measures, the government is importing urea for maintaining buffer stocks of urea.
Meanwhile, Ministry of Commerce submitted a summary for rationalization of tariff on import of vehicles and other items requested by MOIP & other sectors. The meeting discussed the summary in details and approved recommendations of the Tariff Policy Board with some modifications. The forum also decided to review some recommendations relating to automotive sector after six months.
The auto sector related proposals are: imposition of 50 per cent RD on import of electric vehicles having more than 50 kWh battery pack; (ii) RD on hybrid vehicles (CBU) to be increased from 15 per cent to 50 per cent on 1,501cc to 1,800cc vehicles; (iii) RD on CBU import (normal gasoline vehicle) to be increased from 15 per cent to 50 per cent; (iv) FED on locally manufactured cars/SUVs from 1,501cc and above to be enhanced to 10 per cent ( existing is 5 per cent); (iv) FED on 1,501-1,800cc cars/SUVs in CBU condition to be enhanced to 10 per cent (existing is 5 per cent). The Tariff Policy Board also decided, on the recommendations of Tariff Policy Centre (National Tariff Commission), to impose 10% RD on textile material Polypropylene (HS Code 5402.4800, 5402.5300, 5402.6300, 5404.1200, 5503.4000, 5506.4000) in order to address tariff anomaly at request of the industry, to remove 5% RD on Varnishes (HS Code 3208.2010) as these are used in making of furniture, and to impose 20% RD in lieu of Anti-Dumping Duty on the import of Soda Ash (HS Code 2836.2000) as requested by the industry and National Tariff Commission (NTC) for a period of 6 months.
The ECC also approved requests of Technical Supplementary Grants presented by Petroleum Division and Finance Division. The request of Power Division for TSG was also approved subject to the reconciliation with Finance Division.
Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Federal Minister for Privatization Muhammedmian Soomro, Federal Minister for Water Resources Chaudhry Moonis Elahi, Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood, federal secretaries and senior officers attended the meeting.