Gwadar: 10-year tax holiday for GEPZ approved by ECC

[LRE]

10-year tax holiday for GEPZ approved by ECC


ARIF RANA
ISLAMABAD (July 18 2008): The Economic Co-ordination Committee (ECC) of the Cabinet has approved 10-year tax holiday as part of incentive package for Gwadar Export Processing Zone (GEPZ). Sources said the Ministry of Industries and Production had presented the summary to this effect to the ECC in its meeting held in Lahore on July 15.

Tax holiday for GEPZ will be applicable from the date of start of commercial operation of the project, permission for export of production from the zone to tariff area of the country up to 80 percent on the payment of normal duties.

The package also promises normal incentives for exports from GEPZ as available to projects established anywhere in the country shall be applicable to exports from the projects in the zone. As an incentive the plots in GEPZ will be provided to investors on lease (as per existing EPZA procedure) at a reasonable rate to be determined in consultation with the government of Balochistan.

The package also includes zero rated sales tax on supply of construction materials to GEPZ investors or development of zone infrastructure. It also includes exemption from stamp duty and exemption from import policy orders issued from time to time.

Copyright Business Recorder, 2008