Reduction in taxes on masks import

LAHORE: The Punjab government has not forwarded the decisions made in the ministerial meetings to the federal government about reducing duties and taxes on procurement of masks, gloves and other environment and health safety-related supplies, The News has learnt on authority. Sources believe withdrawal of duties and taxes on import of masks, surgical equipment related to health protective masks, gloves, gowns and other related items could reduce prices of these items significantly and enhance their availability in markets.

Punjab Finance Minister Hashim Jawan Bakhat chaired a meeting on Dec 4, 2019 to review disbursement-related indicators of Punjab Green Development Programme funds. The meeting decided to send a summary to the federal government for withdrawal of the duty and other taxes on import of air-cleaners, face masks and other related products used for safety from smog. However, no summary was sent to the federal government, though the federal government officials had assured the minister that a notification would be issued on receipt of a request in that regard.

In another related instance, Punjab Industries Minister Mian Aslam Iqbal held a meeting on Feb 28 2020, after The News reported shortage of masks and unprecedented increase in their price. The meeting decided to request the federal government to withdraw duties and taxes on import and sale of surgical equipment related to protective masks, gloves, gowns and other equipment in the backdrop of coronavirus. The minister assured importers and other stakeholders in the meeting that a request would be sent to the federal government after getting feedback from them. Official handouts were also issued by the Directorate General of Public Relations (DGPR) Punjab about the decisions. However, no summary or request was sent to the federal government in that regard.

When contacted, Secretary Industries Zafar Iqbal said the Industries Department, after completing its work, had handed over details to the Health Department while DG Health had constituted a committee to look into the matter. He said as the Health Department was also part of the meeting, the Industries Department had only provided the required information about the existing industries in Punjab. It was decided that the remaining work in the case would be completed by the Health Department, he added.

On Wednesday, a meeting was chaired by Punjab Finance Minister Hashim Jawan Bakhat about the COVID-19, with three points on the agenda for discussion including health, infrastructure and financial needs, economic impact analysis, and social protection plan for the vulnerable community in the wake of COVID-19 spread. It was pointed out by a Health Department representative in the meeting that no official of the department was ready to take responsibility of procurement of masks, gloves, gowns and other equipment. Instead, they were suggesting the minister and government itself make the decision on it to avoid any action by the National Accountability Bureau (NAB) in future.

The delay in procurement process was also highlighted in the Punjab Assembly on March 9, 2020 question hour session about the Department of Specialised Healthcare and Medical Education, when Health Minister Dr Yasmin Rashid admitted that the MRI machine of Jinnah Hospital Lahore was non-functional since Oct 2019 due to non-availability of helium gas. She pointed out that another couple of months would be requires for making the MRI machine operational.

Hashim Jawan Bakhat told The News smog and COVID-19 were two different issues and were being handled differently. He said that on Wednesday the government constituted three working groups besides allocating over Rs10 billion for COVID-19 Fund. The federal government would also request the federal government for relaxing rules for procurement of all materials like masks, protection suites, sanitiser and other supplies. The industries minister was not available for his version.