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  • Oct 27th, 2017
  • Comments Off on Chromite, coal mining: dumper trucks may be exempted from GST
The government may grant sales tax exemption on dumper trucks used exclusively for the mining of chromite and coal in Balochistan and Thar. It is learnt that the recommendation has been made in last meeting of the Functional Committee on Problems of Less Developed Areas presided over by Chairman Committee, Senator Muhammad Usman Khan Kakar.

The committee was informed by Federal Board of Revenue that the matter of rebate on sales tax on dumper trucks in the areas of Chromite and coal in Balochistan was considered and a decision was made that since it had no exclusive role linked to mining and that it was just another commercial vehicle, therefore, the rule of sales tax rebate did not apply. Machinery related to mining accrues an exemption. However, in the case of Thar Coal Project in Sindh, it was granted under a sovereign agreement. Chairman Committee expressed serious concern over the decision and said the matter would be taken up in the Senate as it discriminated against the province of Balochistan and it was recommended by the Senate.

The Committee unanimously recommended that in the light of the Senate recommendation, rebate may be granted on sales tax on dumper trucks used exclusively for the mining of chromite and coal in the province of Balochistan and Thar.

The committee recommended that the custom gate way of Qamar-ud-Din Karez and Badini in district Killa Saifulah in Balochistan should be made functional in period of two months from the date of issuing minutes.

Chairman Committee asked FBR officials about the customs Gateways established in Badini and Qamar-ud-Din 15 years ago whereas it was a peaceful area and the FBR could use the bank branch of Muslim Bagh. However, FBR said the branch had to be in the vicinity and it ought to have a customs booth. State bank officials said NBP found that opening a branch in the area was not economically feasible. After a detailed discussion, Committee members decided to summon Chairman FBR to the next meeting for a satisfactory answer.

The committee recommended that a branch of the National Bank of Pakistan should be established in Tehsil Darogh of District Musa Khel.

The Committee was informed that there was no share for FATA in the NFC Award as funds were being provided by the Federal government from its own resources which stood at Rs 49 billion during FY 2017-2018. In the 3rd NFC meeting (2016), three provinces knocked down Federal government proposal of allocating 4 percent of divisible pool to FATA, AJK and GB. However, the Federal Government would continue to pursue the matter in the NFC.

On the issue of waiving off agri loans for poor farmers as per resolution passed by Senate of Pakistan, the Committee was informed that Balochistan was recipient to maximum rebates and since it was not a calamity-hit areas, it was not possible to waive off the said agri-loans.

In a discussion on the water crisis in Balochistan, the Committee was informed by Secretary Planning that the water crisis was so serious in the province that a Netherlands University research had proposed that Quetta may have to be moved to water-rich Jhal Magsi or Naseerabad districts.

The under ground-water level is falling day by day in different parts of Balochistan areas; that Planning Division in consultation with the Ministry of Water & Power must make sure that heavy horsepower motors are being used; to solve this issue, it has been decided that the matter will be taken up soon with the concerned departments including Secretary Irrigation Balochistan/Quetta and Members of Farmers Association of Balochistan.

It recommended hat the warrant for arresting those poor Farmers who are unable to pay back the governmental loans of ZTBL in sufficient period, should be withdrawn at once. The committee recommended that Chashma-Zhob transmission line project should be initiated on early basis and Planning and Finance Division should do their respective jobs in this respect in consultation with WAPDA.

The cadet colleges should be established in districts Sherani and Musa Khel in the same pattern followed by finance division to establish other colleges. The funds for land acquisition for CPEC projects for constructions of roads from DI khan to Zhob and from Zhob to Kuchlak and from Quetta to Sorab should be at allocated, not less than Rs 30 billion.

The maximum amount of funds should be provided for cultivation of olive in Balochistan which will boost the economy of Pakistan. During meeting, it was informed that PC-I for Rs 68 billion for solar system for tube-wells in Balochistan is almost ready and will be forwarded to concerned quarter, the Committee suggested that PC-I be processed as stated in the meeting and no. bureaucratic tactics be used to delay it and the tender be awarded till December 2017.

It recommended that a bailout package may be provided by the Federal Government to build small dams in Balochistan to address the water crisis in the province. In consultation with Ministry of Information and Broadcasting/PTV, the required amount may be provided by Finance Division for erection of PTV boosters/towers so that the footprint of the national television could be extended to Ziarat, Barkhan, Musa Khel, Muslim Bagh and other less developed areas.

The recommendations for less developed areas (Balochistan province) made for budget 2017-18, passed by Senate of Pakistan, copy of which was provided to the Finance and Planning Divisions during meeting may be looked into and remedial steps be taken by the respective divisions.



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