Abb Takk News

ECC Approves Package For Setting up Oil Refinery Projects

Islamabad(April 27, 2018): Landmark incentive package for setting up new state-of-the-art Deep Conversion Oil Refinery Projects on Friday was approved by the Economic Coordination Committee (ECC) of the Cabinet.

ECC meeting chaired by Prime Minister Shahid Khaqan Abbasi in Islamabad, approved the package to attract investment in the sector.

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It would be applicable to expansion of existing refineries of minimum 100,000 barrels per day capacity, beside PARCO Coastal Refinery Project.

The incentive package includes 20 years income tax holiday, exemption from all duties, taxes, surcharges and levies on import, by the Refinery Project.

It also includes exemption from withholding tax and all other duties, taxes, surcharges, levies and import relating to foreign contractors and subcontractors and their personnel.

Similarly, sales tax and excise duty on supply of locally manufactured building and construction of material, equipment and service for setting up of Refinery would also be exempted.     New Refinery projects would be given a pricing mechanism which would be no less favorable than the prevailing mechanism.

The package also grants waiver to applicable Development Surcharge on the value of exports in case Refinery Project is set up in Export Processing Zone.

This decision will facilitate establishment of new state-of-the-art refineries in any part of the country Pakistan.Yesterday, the Economic Coordination Committee of the Cabinet (ECC) approved 1.733 billion rupee Ramzan Relief Package for 19 daily use items provided by the Utility Stores Corporation.

Its meeting was held in Islamabad with Prime Minister Shahid Khaqan Abbasi in the chair. The items included in the package are flour, sugar, cooking oil and ghee, grams, basen, dates, rice, squashes, milk and tea.

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The Prime Minister directed that under the Ramzan package daily use items should be provided at lower rates than the market. The ECC also allowed PASSCO to export five hundred thousand tons of surplus wheat at a rebate of 155 dollar per ton through sea route.

The ECC accorded approval of the extension in Financial closing date of 660 KV HVDC Matiari-Lahore Transmission Line up to December this year. The decision has been taken to align the project with the completion of upcoming coal fired power projects being developed at Thar and near Karachi as well as 1100 MW K-2 project at Karachi.The ECC approved a proposal of the Power Division for raising of 100 billion through commercial banks as a fresh financing facility to be arranged through Power Holding Private Ltd. (PHPL). The loan amount will be utilized for funding the liabilities of the power distribution companies towards Central Power Purchasing Agency (CPPA) and the sectoral entities.

Approval was accorded by the ECC for revision of Cess Rates of Tobacco for the Year 2017-18.

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