ISLAMABAD: The government has decided to abolish the cross-subsidy from industrial power tariff, and the end peak rates under the upcoming industrial policy to boost exports, The News reported on Wednesday.
The government has also decided to bring changes in laws, including introducing a unified insolvency law.
At the prime minister level, it has been agreed that industrialists would be protected from direct interference of the National Accountability Bureau (NAB), Federal Investigation Agency (FIA) and Federal Board of Revenue (FBR).
The decision has been taken to amend Section 41 B and Section 42A of the SECP Act 1947, whereby it would be mandatory to secure approval of the SECP before any action is taken by law enforcement agencies (LEA).
In the proposed changes in 41B for inquiry, investigation and other proceedings in respect of regulated persons, it is stated that notwithstanding anything contained in any other law, including but not limited to the National Accountability Ordinance, 1999 (XVIII of 1999), the Federal Investigation Agency Act, 1974 (VIII of 1975), the Prevention of Electronic Crimes Act, 2016 (XL of 2017), and the Pakistan Penal Code, 1860 (XLV of 1860), no action, criminal inquiry, investigation or proceedings against regulated person or its officer including, stock exchanges, central depositories and clearing houses, conventional and digital Non-Banking Finance Companies (NBFCs), Insurance Companies or brokers, in respect of any regulated activity, regulated securities activity, transaction, process or permission granted under this Act or any administered legislation, shall be taken, initiated or conducted by any federal or provincial investigating agency, bureau, authority or institution by whatever name called without reference from the Commission.
No proceedings shall lie before any agency, bureau, authority or institution at the instance of any party to a matter which is or has been in issue before the Commission, in respect of a matter which is actually or has been or might or ought to have been a proper subject of complaint to the Commission under the administered legislation.
The proposed amendment clearly defines foreign investors, including NICOP holders. Protection has been extended to provide certainty and ensure safeguards from arbitrary interference by external authorities.
"The Power Division shall remove cross-subsidy from industrial power tariff, and abolish Peak Rates," top official sources confirmed while talking to The News here on Tuesday.
According to the draft of Industrial Policy, which is expected to be unveiled soon, the Ministry of Commerce has agreed to announce the drawback of local taxes and levies (DLTL) scheme for exporters, in coordination with the Finance Division and approval of the federal cabinet.
In a bid to clear stuck up refunds worth billions of rupees, the FBR will repay refunds including sales tax (deferred, Refund Payment Orders (RPOs), customs rebates, income tax, and provincial taxes & ensure clearance of the sales tax refunds within a reasonable time, with gradually reducing the time to refund. The Petroleum Division has agreed that it shall remove cross-subsidy from industrial gas prices.
To address tax anomalies, if the fiscal space is available after the end of the current IMF programme, the minimum tax as applicable on other businesses is to be applicable on exporters; the remaining taxes may be collected in the same mode of advance taxes as from other businesses in quarterly frequency if due.
The Industrial Policy envisages that the FBR shall simplify regulatory procedures and conduct audits of exporters, once every 3 years only. The existing legal instruments do not offer a comprehensive and cohesive insolvency framework.
This impedes the ability of the system to support effective restructuring and makes insolvency problematic and costly. The government has decided to bring amendments to the Corporate Rehabilitation Act, 2018 (CRA 2018) and Corporate Restructuring Companies Act, 2016 (CRCA 2016). The revision in CRA 2018 will broaden the scope of eligible debtors, protect companies, and facilitate them.