ISLAMABAD, March 24: The Federal Cabinet on Wednesday decided to immediately reduce customs duty on the import of re-rollable steel scrap from 25 per cent to 10 per cent , and increased the support price of seed cotton (phutti) by Rs75 per 40 kg.
An announcement by the federal government after the Cabinet meeting on Wednesday, said the decision had been taken to end difficulties being faced by local manufacturers of M.S. bars and steel rolled products.
The previous rate of 25 per cent custom duty on the import of re-rolled scrap was being agitated against by local manufacturers on the ground it was very high as compared to the duty rate on other raw materials like M.S. scrap, ships for scraping and billets.
The cabinet also decided to eliminate the current levy of three per cent withholding tax on the import of ships for scrapping and six per cent withholding tax on the import of other raw materials and intermediary products.
It has further been decided not to charge any withholding tax on the import of raw materials by Pakistan Steel Mills and other industrial manufacturers against exemption certificate to facilitate its import without withholding tax. However, income of these industrial importers from the finished items shall remain subject to tax as per existing rules and regulations.
The prime minister, however, directed the ministry of Industries and Production and Minister for Finance to closely monitor prices of steel and cement and ensure availability of both items as the demands for these had increased sharply in recent months.
The cabinet also approved the support price of seed cotton (phutti) at Rs925 per 40 kg from the current level of Rs850. The increase in the support price of phutti has been approved due to increase in the cost of fertilisers and the diesel.
The Trading Corporation of Pakistan will be assigned the task of implementing the price policy of seed cotton through buying lint at the price to be based on the support price of seed cotton.
The prime minister directed the minister for food and agriculture to activate the agricultural research organizations to ensure improvement in quality of cotton seed, continuous testing of the soil, and provision of quality fertiliser at affordable prices.
The prime minister also took notice of reports of adulteration in pesticides and directed the ministry to coordinate with the provincial governments to eliminate this menace. He issued a directive that the adulterers of pesticides must be awarded exemplary punishment under the law.
The prime minister entrusted Dr Atta-ur-Rehman with the task of bringing about improvement in the quality of seed through intensive research. Expressing displeasure over the performance of the PARC and the NARC, the prime minister asked them to move out of their offices and visit fields to relate their research with the actual needs of farmers.
The cabinet approved a proposal to stop issuance of Rs5 bank notes from the July 1 this year whereas the notes already issued will continue to remain in circulation.
The commercial banks will stop issuance of re-issuable notes with effect from Jan 31, 2005, but will continue to accept Rs5 notes up to June 30, 2005. The note of Rs5 will continue to remain legal tender till June 30, 2005.
A decision to replace Rs5 bank note with Rs5 coin was taken by the Cabinet about three years ago. The Pakistan Mint has since committed to provide 250 million pieces of Rs5 coins by the end of the current financial year.
The cabinet also decided to establish Pakistan Sikh Gurdwara Parbandhak Committee comprising exclusively of representatives of the Pakistani Sikhs. Commenting on the proposal, the prime minister reiterated the resolve of his government to ensure the rights and privileges of the religious minorities in Pakistan.
The upkeep, maintenance and improvement of the Sikh holy places in Pakistan, he said, was the responsibility of the Government of Pakistan which would spare no effort to live up to that responsibility.
The prime minister directed the ministry of culture and minorities affairs to take all necessary steps to improve and upgrade facilities for the Sikh pilgrims at these holy places.
The cabinet also reviewed the position of wheat and atta in the country and noted with satisfaction that this essential item was easily available in the market and that the prices which had gone up, especially in Sindh, had now registered a decline.
With the wheat harvest now under way in Sindh and expected to start in Punjab and other areas by next month, the wheat stock position and supply of 'atta' would be further enhanced bringing about further stability in its prices.