FBR freezes pr accounts, recovers PKR 60 million
The Federal Board of Revenue (FBR) froze the bank accounts of Pakistan Railways (PR) and recovered Rs60 million due to non-payment of its dues.
However, after the PR approached the court to restrain the FBR and obtained a stay, the accounts were restored. The FBR has nevertheless not returned the recovered amount as the court directed officials to resolve the financial issues within a month.
It was learnt that the PR defaulted on Rs60 million of the FBR in terms of income tax for the year 2007.
According to sources, the railway officials have contended that they have provided all the required evidence regarding the payment of dues to the FBR officials several times and have said that there were no dues.
However, they added, the FBR officials were not only unwilling to heed and accept the documentary evidence but have also increased the amount, including the fine, manifold.
500PC additional taxes on imported cars
In startling revelations, the government has imposed up to 500 percent more taxes on imported cars to protect the local car assemblers from foreign competition. In return, however, the assemblers have passed on the agony by overcharging consumers and delaying deliveries up to one year.
The revelations were made during a meeting of the Public Accounts Committee (PAC) – the Parliamentary watchdog – compelling the committee to recommend reviewing the undue protection helping the said companies in fleecing consumers.
The PAC recommended that the government withdraw the status of “manufacturers” instead calling (and treating) them as “assemblers” – a direction, if converted into law, will help lower protection levels enjoyed by the assemblers.
According to the PAC, protection is afforded via the imposition of custom duties, additional custom duties, sales tax, additional sales tax, federal excise duty and income tax at rates that are far higher than charged on the import of parts for locally assembled cars.
Local assemblers enjoy 241 percent to 500 percent protection, revealed Mujtaba Memon, the Special Secretary of Commerce.
Federal cabinet moves to tackle line losses
The federal cabinet on Tuesday approved, in principle, the expansion of installation of advance meters project from Islamabad to other areas of the country to overcome the issue of line losses.
The cabinet in its meeting chaired by Prime Minister Muhammad Shehbaz Sharif also approved the installation of advance meters on power transformers.
The prime minister directed preparing a list of corrupt officers in the power distribution companies and deputing of well-reputed officers on different posts to improve the functioning of these companies, reduce the line losses, and ensure better public delivery.
He observed that such performing officers should be encouraged with appreciation and awards.
The cabinet was given a detailed briefing by the Power Division regarding electricity theft, line losses, and the comprehensive strategy to reduce them.
The meeting was also apprised of the power theft, line losses, bills and recovery in Discos with the presentation of all relevant data, besides, issues in the way of recovery from those feeders which had been running into losses and the steps and proposals in this regard.
K-Electric: no major shareholder has sold stake
K-Electric’s existing owners have confirmed that they are the majority shareholders in the integrated power company, which is available for sale for the past six years, and that China’s Shanghai Electric Power is a top potential buyer.
They reaffirmed their stance in the wake of conflicting reports in the media that one of the three major shareholders had sold its stake to a new investor.
With the assertion, the consortium of Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait and Infrastructure Growth Capital Fund (IGCF) has remained the majority shareholder in KE.
The consortium is holding 66.40 percent shares in the firm. Besides, the government of Pakistan holds 24.36 percent shareholding.
IGCF, a private investment firm registered in Cayman Islands, is an indirect shareholder in KE. It confirmed that it had not sold any KE shares to new investors, according to a KE notification sent to the Pakistan Stock Exchange (PSX) on Tuesday.
Iqbal reviews projects on JCC agenda
Federal Minister for Planning Development and Special Initiatives Ahsan Iqbal directed the ministries concerned to ‘complete homework’ before the joint cooperation committee (JCC)’s 11th meeting, scheduled to take place at the end of October, so that the presented projects are finalised.
Secretary planning, secretary of communications, executive director CPEC and representatives from different ministries were also present in the meeting.
Premier Shehbaz’s expected visit to China at the end of this month makes this meeting even more important.
Different projects, supposed to be presented in the 11th JCC, were reviewed. These projects were from the areas of energy, information technology, social and economic growth, industrial cooperation, science and technology, transport infrastructure and international cooperation.
Suggestions put forward by ministries were discussed in detail. The federal minister directed the power division to speed up the Gilgit Baltistan’s energy policy process so that progress in the already planned projects is made.