Senate Standing Committee on Industries and Production on Wednesday recommended exemption in taxes, PPRA rules, and resumption of subsidy for Utility Store Corporation (USC) in order to bring the organization out of trust deficit
Islamabad (Pakistan Point News / Online - 25th September, 2019) Senate Standing Committee on Industries and Production on Wednesday recommended exemption in taxes, PPRA rules, and resumption of subsidy for Utility Store Corporation (USC) in order to bring the organization out of trust deficit.The committee also called BISP, FBR and PPRA officials in the next meeting in order to discuss availability of cheap commodities to beneficiaries of Benazir Income Support Program (BISP).
The meeting while recommending issuance of pension and gratuity fund to widows of Pakistan Steel Mills former employees also called secretary finance to ensure his presence in the next meeting.The meeting was held under the chair of Senator Ahmed Khan at the Parliament House in Islamabad.The Utility Stores Corporation officials briefed the meeting that the corporation has 188 franchises in the country with 4,041 regular stores and 12,869 employees.
The committee was told that utility store is not getting any subsidy or grant for its operational expenses since 2014 and everything is being run from gross profit margin of the sale proceeds.The corporation had Rs5.122 billion net loss up to March 2019 and paid Rs0.947 billion as taxes in 2018-March 2019. The Committee strongly recommended reviving the subsidy and giving tax exemption to the corporation to provide better products in low price for general public.
The meeting was attended among others by Senators Asif Kirmani, Naseebullah Bazai, Seemee Ezdi, Aurangzeb Sitara Ayaz, Kalsoom Parveen, Hafiz Abdul Karim, Secretary Industries and Production, MD Utility Stores Corporation and other officials.MD Utility Stores Omer recommended rerouting the BISP purchases through the utility stores as it will help utility stores corporation to convert losses into profits.The Committee was told that high sales targets can be achieved if the continuous inventory is sustained at the corporation throughout the year.
The corporation has made a strategized work plan to achieve its targets by taking the current margin of sales from 8.67% to 10.17%. up-gradation of stores, hyper markets, improve branding, collaborating with BISP on Ehsaas Card Scheme, ensuring direct supply of stocks, induction of high margin products. Reverting to TCP for purchase of sugar, purchasing wheat grain from PASCO to be milled on contractual prequalified flour mills and having a proper IT strategy was also discussed.The meeting also discussed the matter of non-functional units of Pakistan Steel Mills and non-payment of gratuity and pensions to employees. The Committee called upon the relevant authorities to understand the problems faced by the old pensioners and decided to call Secretary Finance in the next meeting to discussed issuing funds for the payments.
