Government releases Rs. 50 billion to manage circular debt; Amnesty Scheme in doldrums

The government has taken a decision to release funds worth Rs. 50 billion in an effort to manage circular debt that has been bottle-necking the power sector.

The Government has decided to release the amount to help increase import of furnace oil in a bid to run power plants across the country.

The additional sum of Rs. 50 billion would bring the cumulative funds to de-bottleneck the power sector to a whopping Rs. 123 billion.

The decision was taken by the Senate Standing Committee meeting held under the chairmanship of Farooq Naik.

• Amnesty scheme in tatters -

In another shock to the touted amnesty scheme, the Standing Committee on Finance today rejected tax structure on sale and purchase of property.

The Committee today announced that the Federal Government has no legal right to collect taxes on the property.

Furthermore, the Committee also directed that the consent from Council of Common Interest must be mandates before any such decision is made.

The Committee also came to the decision that, from this particular scheme the Federal Government will not be allowed to collect tax nor will it resolve the issue of fair market price.

Schooling the Federal Government on the rules and procedures, the Committee reiterated that the collection of taxes on property falls in the ambit of provinces.