May 7, 2003	Wednesday	Rabi-ul-Awwal 4, 1424

ISLAMABAD, May 6: The federal government has agreed to exempt import of edible oil imported by the Vegetable Ghee Manufacturers from one per cent warehousing charges and to extend sales tax and income tax law to tribal areas.

These issues were raised and agreed to at a meeting presided over by minister for industries Liaqat Ali Khan Jatoi and attended by secretary industries and a delegation of ghee mills representatives, official sources told Dawn.

The minister told the delegation that their genuine problems like warehouse charges and difficulties faced by ghee industry due to tax free ghee production in federally and provincially administered tribal areas (Fata and Pata) would be resolved in the budget 2003-04.

However, he said that government was considering to take strict action against those ghee mills who were not selling underweight product and were not adhering to quality standards set by the Pakistan Standards Quality Authority.

The secretary, industries, Dr. Akram Sheikh, told the delegation that the ministry had already sent its recommendation to the finance ministry to remove one per cent warehousing surcharge on edible oil import.

The vegetable oil industry told the ministry that industries in Fata and Pata did not come under sales tax and income tax while vegetable ghee and cooking oil units other areas of the country were subject to payment of sales tax at the rate of 20 per cent including advance minimum withholding tax.

As a result, the units located in Fata and Pata have an advantage of Rs10,000 per ton or Rs10 per kg. Resultantly, the industries in the settled areas were unable to compete with the tribal mills and thus considering to shift their units to tribal areas.

This would not only a loss of revenue to the government but to the industry as well. They proposed to extend sales tax laws to tribal areas or the governor should levy agency tax to provide a level-playing field to all.

The secretary assured the delegation that their problem was genuine and would be taken up with the finance ministry for resolution.

On the question of tin-plate prices, the delegation said the CBR has recently fixed ITP value of imported tin-plate at $400 per ton against the actual import price of $240 to 270 per ton. This high ITP value, they alleged had be imposed to protect only one party i.e. Siddiqsons Tin-Plate, which was already enjoying unmatchable benefits of total exemption of customs duty on imported raw material, exemption of sales tax, income tax, etc. They contended that there was no reason for giving undue protection to a unit which was already enjoying incomparable benefits. They demanded that customs duty on imported tin should be charged on the basis of value quoted in dollars per ton in the metal bulletin research relevant to the date of transaction verified by the vegetable ghee mills industry.

The industry representatives were also assured that this issue would also be taken up with the finance ministry for early resolution.