ISLAMABAD: The Finance Ministry has allocated an amount of Rs 11.3 billion for 30 projects costing Rs 114 billion in and around the coastal areas as well as Gwadar Port, Balochistan.
“To honor the commitment of the Federal Government for socio-economic development of Baluchistan in particular the up-gradation of Gwadar as an integral part of China Pak Economic Corridor, the Finance Ministry is ensuring uninterrupted releases of funds to the ongoing 30 projects” a well placed source at Finance Ministry told this scribe here on Monday, adding that these projects were being implemented in Gwadar, Ormara, Pasni, Jiwani and other areas.
The coastal areas contribute enormously to the national exchequer in the form of foreign exchange, however, exact contribution of coastal areas in foreign exchange earnings cannot be ascertained due to some inevitable reasons.
This mode in view the Finance Ministry has taken several measures for development of coastal areas of Balochistan including provision of substantial amounts of funds to the Provincial Government for spending on development under 7th National Finance Commission (NFC) award.
Besides provision of funds, the Finance Ministry has also announced several tax incentives including granting income tax exemptions to people hailing from specified classes of income, or persons or classes of persons, subject to the conditions.
Under article 126-A of the Income Tax Ordinance 2001, income derived by China Overseas Ports Holding Company Limited from Gwadar Port operations for a period of twenty years, with effect from February 2007.
Furthermore, in accordance with the article 126-B of the said ordinance, profit and gains derived by Khalifa Coastal Refinery have been granted income tax exemptions for a period of twenty years beginning in the month in which the refinery is set up or commercial production is commenced.
Moreover, article (126-D of Income Ordinance, profit and gains derived by a taxpayer from an industrial undertaking setup in the Gwadar has been declared as tax free because this investment will be considered falling within the ambit of Export Processing Zone Authority Ordinance, 1980 as Export Processing Zone, Gwadar, for a period of ten years beginning with the month and year in which the industrial undertaking is set up or commercial operation commenced.
The article 126-H of Income Ordinance also provides income tax exemption to all profits and gains derived by a taxpayer, from a fruit processing or preservation unit set up in Baluchistan Province between July, 2014 and June, 2017.
These units are required to be operational in processing of locally grown fruits, for a period of five years beginning with the month in which the industrial undertaking is set up or commercial production is commenced.
The under Sixth Schedule to Sales tax Act 1990 provides exemption from Sales tax to imports of supplies including plant, machinery and equipment imported for setting up fruit processing and preservation units in Balochistan to be set up by June, 2019.
Under Customs act, 1969, these projects are required to be subject to the same conditions and procedure which are applicable for import of such plant, machinery and equipment and other project related items including capital goods, for setting up of hotels, power generation plants, water treatment plants and other infrastructure related projects located in an area of 30 km around the zero point in Gwadar.
