10-year tax holiday for industries in interior Sindh recommended

[LRE]

10-year tax holiday for industries in interior Sindh recommended
RECORDER REPORT
KARACHI (August 26 2008): Sindh Minister for Industries and Commerce, Mohammed Abdul Rauf Siddiqui said on Monday that the provincial government has urged the federal government to announce ten-year tax holiday for industries in the interior of Sindh. Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI), he said that allowing ten-year tax holiday would help boost industrialisation in the interior of Sindh.

He said that the government has also decided to establish more industrial zones in the province. Government wants to develop every area of the province and encourage investors to establish industrial units, he added. He said that the government has already allocated 300 acres of land in Hyderabad, 500 acres in Dhabije for new industrial zones.

More land will be allocated on Super Highway for industrial estates, he said. He said industrial plots would be allotted to all applicants. These plots will not be sold transferred to other person. Allottees have to establish units within a specified time, otherwise these plots would be taken back explained

He announced the formation of a seven of member ministerial consultative committee comprising Zubair Motiwala, Siraj Kassim Teli, Shamim Ahmed Shamsi, S. M. Munir, government officials and other representatives of trade bodies.

He said that the committee would prepare a comprehensive industrial and trade development plan and point out bottlenecks hindering the growth of this sector. He assured the business community that their trade, industrial and investment problems would be taken up with the concern federal ministers by next week.

President KCCI, Shamim Ahmed Shamsi said that there is severe energy crisis in Pakistan, as its production does not cope with the demand, which is increasing by 10-12 percent per annum.

To solve the problem the government is resorting to frequent increase the prices of POL products. This may risk losing government credibility if nothing is done to generate electricity at affordable rates. Rising inflation and burgeoning fiscal deficit have already constrained the government's ability to subsidies power production from imported oil.

It will not be out of place to mention here that India has reduced POL prices, and has issued oil bonds to the retailers to compensate them for losses they suffered in selling oil at below the market rate. Consumers in India are getting petrol at Rs 45.52 per liter, he added.

Copyright Business Recorder, 2008