NEWS COVERAGE PERIOD FROM MARCH 30TH TO APRIL 5TH
‘INJUSTICE AGAINST SEAFOOD PROCESSING INDUSTRY SHOULD END’
By RECORDER REPORT on April 1, 2020
The country’s $450-million seafood export business seeks an electricity tariff structure similar to those of the five zero-rated sectors, saying that the “injustice” against the seafood processing industry should end, exporters said on Tuesday.
They said that the seafood industry was the loser as far as government subsidies were concerned, adding that this sector had the potential to grow up to $3 billion mark if it got support from the ministries concerned.
“Today it is very heartening to learn that the government announced a concessionary rate of electricity for the exporters but limited it to five blue-eyed industries, textile, leather, surgical appliances, sports goods and carpet industry,” a former chairman of the Pakistan Seafood Exporters Association, Syed Akhlaq Hussain Abidi, said while talking to the Business Recorder.
He asked why the government never paid attention to the seafood sector, saying that this sector had the capacity to earn $3 billion if the government began looking after the sector.
“But we don’t know why the government discouraged this industry?” he asked. He said the removal of the ISPA support to industry was deferred for a month after much hue and cry since the industry was closed during the high season of fishing in the wake of the lockdown by the Sindh government.
“Very recently the government took away support of ISPA and burdened the industry with retrospective charges,” Abidi added. The five industries were awarded a “concessionary” rate of Rs7.50 with all inclusive charges whereas the seafood export sector was charged at Rs18 a unit “high tariff”. The seafood industry was a 95 percent export industry, he said.
Copyright Business Recorder, 2020
‘INJUSTICE AGAINST SEAFOOD PROCESSING INDUSTRY SHOULD END’
BR Web Desk April 01, 2020
The country’s $450-million seafood export business seeks an electricity tariff structure similar to those of the five zero-rated sectors, saying that the “injustice” against the seafood processing industry should end, exporters said on Tuesday.
They said that the seafood industry was the loser as far as government subsidies were concerned, adding that this sector had the potential to grow up to $3 billion mark if it got support from the ministries concerned.
“Today it is very heartening to learn that the government announced a concessionary rate of electricity for the exporters but limited it to five blue-eyed industries, textile, leather, surgical appliances, sports goods and carpet industry,” a former chairman of the Pakistan Seafood Exporters Association, Syed Akhlaq Hussain Abidi, said while talking to the Business Recorder.
He asked why the government never paid attention to the seafood sector, saying that this sector had the capacity to earn $3 billion if the government began looking after the sector.
“But we don’t know why the government discouraged this industry?” he asked. He said the removal of the ISPA support to industry was deferred for a month after much hue and cry since the industry was closed during the high season of fishing in the wake of the lockdown by the Sindh government.
“Very recently the government took away support of ISPA and burdened the industry with retrospective charges,” Abidi added. The five industries were awarded a “concessionary” rate of Rs7.50 with all inclusive charges whereas the seafood export sector was charged at Rs18 a unit “high tariff”. The seafood industry was a 95 percent export industry, he said.
Copyright Business Recorder, 2020
https://www.brecorder.com/news/1000624/clashes-outside-white-house-as-us-cities-under-curfew
NEWS COVERAGE PERIOD FROM APRIL 13TH TO APRIL 19TH
GOOGLE LAUNCHES ‘JOURNALISM RELIEF FUND’
AFP April 16, 2020
GOOGLE said on Wednesday it will launch an emergency fund to help local news outlets struggling to maintain operations in the face of the coronavirus pandemic.
The internet giant gave no specific figure for its fund, but said it would offer grants ranging from the “low thousands of dollars” for the smallest operations to “low tens of thousands for larger newsrooms.”
The move comes with the media sector facing deep cutbacks resulting from the global consumer lockdown, an intense economic slump and a retrenchment in advertising revenues that many news outlets depend on.
“Local news is a vital resource for keeping people and communities connected in the best of times,” Google News vice president Richard Gingras said in a statement.
“Today, it plays an even greater function in reporting on local lockdowns or shelter at home orders, school and park closures, and data about how COVID-19 is affecting daily life.” Gingras said the fund will open to outlets “producing original news for local communities during this time of crisis,” with applications due by April 29.
“At the end of the process, we’ll announce who has received funding and how publishers are spending the money,” he said.
“We believe it is important to do what we can to alleviate the financial pressures on newsrooms, and will continue to look at other ways to help with more to announce soon.”
Published in Dawn, April 16th, 2020
https://www.dawn.com/news/1549608/google-launches-journalism-relief-fund
PSMA REJOINDER TERMS FIA REPORT MISCALCULATED
Amjad Mahmood April 17, 2020
LAHORE: The Pakistan Sugar Mills Association has rejected FIA’s sugar crisis report saying its members are “shocked and dismayed” at the “surprise” issuance of the document.
“…the report is replete with self-contradictory, speculative, misleading and misconceived statements and averments,” it says in a rejoinder sent to FIA DG Wajid Zia with copies to the prime minister and all the four chief ministers besides other authorities on Wednesday.
Issued on April 4, the report blamed [among others] top leaders of the ruling PTI and sitting ministers as involved in cartelisation to enhance prices in the local market and exported the commodity when there was a shortage in the domestic market and in the process also claimed export subsidies worth billions of rupees from the government.
The PSMA rejoinder said the three-member FIA inquiry committee lacked the requisite experience for investigating trade of commodities which led to “grossly wrong conclusions on calculations of ex-mills price, reasons for increase in price, role and effect of export and subsidies, etc.”
It said the panel did not comprehend the short duration of time (120 days) in which the industry works unlike other sectors and that the sugar prices are controlled by the government by fixing sugarcane support price and then allowing or disallowing export of the commodity.
The millers argued that either the government deregulate the entire sugar business or fix minimum sale price of it like the sugarcane so that no price and related issues ever come up again.
Saying export subsidy was not an unusual thing, it maintained that it was the Economic Coordination Committee that allowed the export on the basis of assessment of stocks by the relevant agencies and that the federal cabinet endorsed the decision.
Referring to relevant part of the report, it said the committee itself identified instances of stiff competition between millers so there was no question of cartelisation/ manipulation as alleged in it. It said the stoppage of crushing by some units was purely on localised cane availability basis and it has nothing to do with the decision at association level.
It pointed out that there was no sugar crisis during the period under consideration by the committee, which failed to get that the price hike in July 2019 was due to increase in sales tax from 8pc to 17pc.
The rejoinder said the data in the report rather points out that at certain occasions the ex-mill price was below the cost of production. It objected to what it said unnecessary mentioning of names of shareholders of some corporate entities and that too selectively without any substantiated material and use of words like “political clout and influence in decision-making”.
Published in Dawn, April 17th, 2020
https://www.dawn.com/news/1549804/psma-rejoinder-terms-fia-report-miscalculated
NEWS COVERAGE PERIOD FROM APRIL 20TH TO 26TH
FERTILIZER INDUSTRY SEEKS REMOVAL OF DISCREPANCIES IN TAXES
By MUSHTAQ GHUMMAN on April 23, 2020
The domestic fertilizer industry has sought removal of discrepancies in taxes on different types of fertilizers that are hurting the industry as well as farmers. In this regard, a meeting was held between the representatives of fertilizer industry and the Federal Board of Revenue (FBR). Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) has written a letter to Member IR Policy, FBR on different issues facing the domestic fertilizer industry.
According to the FMPAC, the present tax laws caused significant imbalance between input and output GST, leading to perpetual piling up of refundable/adjustable/receivables of fertilizer manufacturers, who are already suffering losses because of nonpayment of subsidy 19 billion during the last 3 years and GST refundable/adjustable of Rs 32 billions. The industry maintains that the imposition of Minimum Tax Regime on import of fertilizer even by manufacturers resulted in incremental tax burden leading to higher costs and additional burden on the farmers.
Explaining grievances about respective tax amendments, FMPAC says that the Finance Act 2018 reduced the rate of output GST on sale of urea from 5% to 2% but no corresponding adjustment was made in the input tax rates which were maintained at 5% to 17% which led to significant mismatch by triggering considerable amount of unadjusted sales tax. The Industry claims that it is currently paying input tax of around Rs 101 to Rs 144 per bag of urea , which is much in excess of the output GST of Rs 32 per bag resulting in GST refund/adjustment of Rs 68 to 111 per bag. Similar mismatch exists in case of other locally produced fertilizer products as well. The current rates for natural gas and RLNG have been taken into account.
The massive mismatch between input and output taxes is adding to already outstanding huge refund of fertilizer industry (almost 7.8 billion per annum) and thus cash flow challenges for the industry. The FBR has been requested that for all locally produced fertilizer products, GST on natural gas/RLNG be reduced to zero percent both for feedstock and fuel to ease the delta between input and output GST, and special attention be given towards settlement of massive existing sales tax refunds awaiting disbursement by the fertilizer manufacturers. FMPACT further states that the reduced output GST at flat rate of 2% while maintaining the GST on Phosphoric Acid for the fertilizer sector @ 5% and Rock Phosphate @ 10% besides Custom Duty of 5% (3+2 additional) has caused a wide mismatch between input taxes (Rs 218 per bag of DAP) and output (Rs 67 per bag of DAP) leading to heavy refund liability for FBR and agony for the manufacturers.
According to the industry, similar mismatch exists in case of NP, as well. Moreover, lower rate of GST on finished goods may induce unnecessary imports at the cost of domestic industry besides negatively impacting foreign exchange reserves and trade deficit, and the industry is requesting that the gap between input and output GST of DAP and NP may be addressed through zero based GST on all industrial inputs especially Phosphoric Acid, Rock Phosphate and commensurate relief on steam and power used for manufacturing of DAP and related products.
It was also brought in the notice of participants that through Finance Act 2017, fertilizer imports by fertilizer manufacturers were imposed under minimum tax regime resulting in incremental tax burden on whole agricultural value chain.
The Finance Act 2018-2019 sought to bring back some protection to imports (including fertilizer manufacturers) through substitution of FTR to Minimum Tax Regime vide insertion of clause 148 (8)(a) to the Income Tax Ordinance, 2001. However, this respective clause capped the tax liability to a minimum of 5% of import value, thereby effectively maintaining the same tax position that was applicable under the previous budget (i.e. FTR at 5.5% of import value).
The Association was also of the view that further Sales Tax (3%) on import of DAP and other fertilizer is yet another issue. This tax is non-refundable and adjustment is also an issue as output GST is less than input GST and Additional Sales Tax taken together. The association therefore urged the government that Further Sales Tax on import of DAP and other fertilizer by manufacturers be abolished to improve availability / affordability of phosphate.
Copyright Business Recorder, 2020