investors
FBR

Cabinet reduces 6% sales tax on ready made textile articles import

ISLAMABAD: The federal cabinet has approved has reduced 6% sales tax on ready made textile and leather articles import.

The meeting of the federal cabinet was held in Prime Minister’s Office with Prime Minister Shahid Khaqan Abbasi in chair.

The Cabinet approved amendment in SRO 1125(I)/2011 dated December 31, 2011 allowing reduction in rate of sales tax from 17 percent to 6 percent on ready to use imported finished articles of textile and leather, in line with WTO regulations.

The cabinet approved proposal of Revenue Division to amend the Convention of the Avoidance of Double Taxation between Pakistan and Korea.

Amendment to the existing Convention between Pakistan and Qatar for the avoidance of double taxation and Prevention of Fiscal Evasion with respect to Taxes on Income for Updation of Article on Exchange of Information was approved by the Cabinet.

Furthermore, the Cabinet approved amending the existing Convention between Pakistan and Canada for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income for Updation of Article on Exchange of Information.

Amendment in Import Policy Order with regard to import of beef was approved. In order to clarify the said commodity in Import Policy Order, the word MBM would be incorporated after the word “meat and bone meal” in the said Policy Order.

The federal cabinet also approved a proposal by Aviation Division to grant exemption to Pakistan International Airlines Corporation Limited (PIAC) from fee payable @ 0.1 percent to the Pakistan Stock Exchange Limited (PSX) and supervisory fee payable @ 10 percent to Securities and Exchange Commission of Pakistan of PSX fee on issuance of additional shares.

Establishment of Insurance Tribunal at Lahore and Multan was also approved.

The Cabinet approved appointment of Air Marshal Ahmer Shahzad as Chairman Pakistan Aeronautical Complex Board Kamra.

Extension in contract appointment of Omar Arshad Hakeem, Judicial Member (BS-21) Customs Appellate Tribunal, Bench II Lahore for a further period of two years was allowed by the Cabinet.

The Cabinet approved a proposal of Law and Justice division for repatriation of Manoo Mal Khagaija, Judge Banking Court-I Hyderabad to Sindh High Court and appointment of Syed Nasiruddin Shah, District and Session Judge as Judge Banking Court -I Hyderabad.

The Cabinet also ratified recommendations of the Cabinet Committee for disposal of legislative cases held on 22-09-2017. Decisions taken by Economic Coordination Committee of the Cabinet in its meeting held on 14-09-2016 were ratified by the Cabinet.

Proposal of Economic Affairs Division for signing of Financial Cooperation Agreement (FCA) 2015 with Germany was approved.

The Cabinet allowed signing of MoU between Intellectual Property Organization (IPO) of Pakistan and State Intellectual Property Office (SIPO) of China.

The enhanced cooperation between IPO-Pakistan and SIPO-China would enable both the organizations to learn from each other’s experiences.

IPO-Pakistan would also learn from China’s rich experience in using the IP system in a balanced and flexible manner that promotes national development and trade while protecting IP rights.

The Cabinet ratified the Statute of the ECO Regional Centre for Cooperation of the Anti-Corruption Agencies and Ombudsmen (RCCACO).

On agreement between the Government of the Russian Federation and the Government of Pakistan on cooperation for the construction of 600MW natural gas combined cycle Power Plant at Jamshoro, the Cabinet authorized Power Division to negotiate the details of draft Framework Agreement and bring the agreed version before the Cabinet. It would also finalize the terms and conditions of the loan in consultation with EAD and Finance Division.