Resolving pending issues: OICCI for quick refund of power sector dues
Secretary for Water and Power assured that the government was trying its best to resolve the issues
PHOTO: REUTERS
KARACHI:
The Overseas Investors Chamber of Commerce (OICCI) on Friday called for the earliest payment of refunds of power sector companies, which were pending since long.
This international trade body also recommended that general sales tax (GST) on electricity from other sources be increased to 20 per cent from 17 per cent as had been done in case of diesel-based independent power producers (IPPs) so that input and output rates become equal.
The OICCI’s Secretary General Abdul Aleem, in his presentation to Federal Secretary of Water and Power Muhammad Younus Dagha at the Chamber, pointed out that under the power policies and tax laws, the IPPs were exempted from income tax including exemption from the minimum tax etc. “However, Federal Board of Revenue (FBR) is demanding the same from IPPs,” Aleem said as he called for withdrawal of FBR orders issued in this regard.
The secretary general said that all commitments by Water and Power Development Authority (Wapda) to provide standby letter of credit (SBLC) under the power purchase agreements (PPA) should be fully complied with. “Wapda has stopped providing the SBLC to Pakistan State Oil (PSO) as required under the fuel supply agreement,” he added.
He emphasized that Wapda Power Privatisation Organisation (WPPO) be made effective by ensuring one window operation and appointment of permanent General Manager.
Secretary for Water and Power Muhammad Younus Dagha assured that the government was trying its best to resolve the issues facing trade and industry, especially of the overseas investors. “I am here to increase your confidence,” he informed the OICCI members.
Published in The Express Tribune, January 9th, 2016.
The Overseas Investors Chamber of Commerce (OICCI) on Friday called for the earliest payment of refunds of power sector companies, which were pending since long.
This international trade body also recommended that general sales tax (GST) on electricity from other sources be increased to 20 per cent from 17 per cent as had been done in case of diesel-based independent power producers (IPPs) so that input and output rates become equal.
The OICCI’s Secretary General Abdul Aleem, in his presentation to Federal Secretary of Water and Power Muhammad Younus Dagha at the Chamber, pointed out that under the power policies and tax laws, the IPPs were exempted from income tax including exemption from the minimum tax etc. “However, Federal Board of Revenue (FBR) is demanding the same from IPPs,” Aleem said as he called for withdrawal of FBR orders issued in this regard.
The secretary general said that all commitments by Water and Power Development Authority (Wapda) to provide standby letter of credit (SBLC) under the power purchase agreements (PPA) should be fully complied with. “Wapda has stopped providing the SBLC to Pakistan State Oil (PSO) as required under the fuel supply agreement,” he added.
He emphasized that Wapda Power Privatisation Organisation (WPPO) be made effective by ensuring one window operation and appointment of permanent General Manager.
Secretary for Water and Power Muhammad Younus Dagha assured that the government was trying its best to resolve the issues facing trade and industry, especially of the overseas investors. “I am here to increase your confidence,” he informed the OICCI members.
Published in The Express Tribune, January 9th, 2016.