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FBR announces 10-year tax holiday for projects in SEZs - Naveed Yaseen - 07-21-2009 09:58 AM
By Sajid Chaudhry
ISLAMABAD: Federal Board of Revenue (FBR) on Monday announced 10-year tax holiday for corporate zone developers who would undertake projects in the Special Economic Zones (SEZs).
This exemption would be applicable on income derived by corporate zone developers for projects in the Special Economic Zones in Pakistan.
The aim of the decision is to attract more companies of international repute for industrial zones development so that international quality infrastructure is made available and all required facilities for investors is ensured in the country. This would ultimately help attract foreign capital; technology and modern management skills for export oriented industrial growth in the country.
In this regard, FBR has issued FBR has issued S.R.O. 660(I)/2009 stating that the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, namely:- In the aforesaid Schedule, in Part I, after clause (126D), the following new clause shall be inserted, namely:- “(126E) Income derived by corporate zone developers for projects in the Special Economic Zones as announced by the Federal Government for a period of ten years from the date of start of developmental activity,”.
The development of Special Economic Zones for Chinese investors especially in Punjab and Sindh are underway and government is also negotiating with Japanese, Korean, Malaysian and other investors from key investment partner countries for setting up of Special economic Zones for them at places of their own choice.
Gwadar Economic Zone is also one of the flagship investment destination is being developed with the help of investors from Singapore and China.
Federal Minister for investment, senator Waqar Ahmed Khan has said that special economic zones are being established to generate competitive business atmosphere, he further elaborated that attractive incentives including tax exemption is being offered to the investors in these economic zones. International enterprises can enter in to a joint venture with Pakistani companies. These SEZ’s could be used as a platform for outsourcing as well.
Commenting on investment climate in the country on Monday, he said that we are going to enhance the volume of economy by proving competitive, vibrant and healthy business atmosphere in the country and our liberal economic policies are attracting potential entrepreneurs across the globe for investment in Pakistan. While discussing investment opportunities and incentives, Minister said that average rate of return on investment in Pakistan is 30 percent and in some cases it is up to 50 percent moreover we allow 100 percent foreign equity in major sectors and full repatriation of profit and dividends in all sectors. These attractive incentives have diverted the attention of international business community for their more investment in Pakistan.
Federal Minister reiterated that we don’t believe in rhetoric’s. Our progress in all the economic sectors is quite measurable prudent economic and liberal investment policies of the government have encouraged potential foreign investors and enterprises to invest in Pakistan. In telecommunication sector, we achieved $725.5 million investment and further one billion dollar is being anticipated with in a year, due to the expansion of mobile company’s network in Pakistan, and there will be a tale density in the country soon. We also received significant investment in oil and gas, power and other key economic sectors.
Federal Minister said that we are encouraging private sector to reposition Pakistan’s economy on more competitive global footings. We are carrying out various new endeavors and initiatives to boost the economic development of Pakistan in real terms.
http://www.dailytimes.com.pk/default.asp?page=2009\07\21\story_21-7-2009_pg5_1