Tax Exemptions Were Introduced To Attract New Investment In Specialized Economic Zones (SEZs) Under The China Pakistan Economic Corridor (CPEC) And Other Industrial Units: Finance Minister Asad Umer

The minister said tax exemptions were introduced to attract new investment in Specialized Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC) and other industrial units

ISLAMABAD, (UrduPoint / Pakistan Point News - 23rd Jan, 2019 ) :The minister said tax exemptions were introduced to attract new investment in Specialized Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC) and other industrial units.

In the Greenfield projects, exemptions were given in sales tax and customs duty for import of plants and machinery, he said and also announced relief in sales and income tax and customs duty on manufacturing of equipment used for renewable energy, including solar panels and wind turbines, for the next five years.

Asad Umar said franchise based sports would be encouraged with tax relief to promote healthy activities among the youth.

He said from July 1, super tax of 4 percent on the non-banking companies would be abolished, corporate tax would continue to be reduced by one percent every year and to boost savings and re-investments, tax on savings and re-investments of companies would end from July 1.

The group formation of industries in the private sector would be encouraged with relief on taxes on dividend earnings, Asad added.

He recalled that the downfall of stock exchange index had started in May 2017 and in seven months it had dropped from 53,000 to 38,000 points, while during the five months of Pakistan Tehreek-e-Insaf government, it had fallen by 5,000 points. During the last three weeks, the stock index again rose by 3,000 points, he added.

The minister said withholding tax of 0.02 percent on stock shares was proposed to be abolished and the stock traders could carry forward the capital losses to offset their deficit.

The only increase in tax rate, he said, would be on 1800 CC imported vehicles while three taxes on cheaper phones would be merged into one and there would be no reduction in tax on expensive phones.

He said tax refunds of Rs 200 billion were not paid to the exporters by the previous regime, but now the incumbent government would issue promissory notes by mid February so that businessmen could take credit from banks which would ensure liquidity for their businesses.

Additional export facilitation measures and duty drawbacks would be informed the Adviser for Commerce, he said, adding administrative cost on palm oil would be ended to cut down prices.

He said the government would introduce legislation to resolve court matters between itself and the business sector to facilitate industry while measures were introduced in the finance bill that would reduce the price of fertilizer by Rs 200 per bag.

The productive index unit for farmers would be raised from 4000 to 6000 units and regulatory duty for diesel engines would be cut down from 17 percent to five percent while in line with the order of Supreme Court duties would be reduced to improve health facilities, the minister said.

He said support from the International Monetary Institution (IMF) would be availed to save the people from the financial burden. The country's economic future was bright as it was not in the hands of those who had bought properties in London, Switzerland and Dubai, he added.