ISLAMABAD: Federal Board of Revenue (FBR) has granted withholding tax (WHT) exemption to two Chinese firms on import of vehicles for China-Pakistan Economic Corridor (CPEC).
According to the notification, the provisions of section 148 of the Income Tax Ordinance, 2001 shall not apply for import of plant, machinery and equipment including dumpers and special purposes motor vehicles imported by the following for construction of Sukkur-Multan section of Karachi-Peshawar Motorway project and Karakorum Highway (KKH) Phase-ll (Thakot to Havellian Section) of CPEC project respectively.
The Chinese construction companies including China State Construction Engineering Corporation Ltd and China Communication Construction Company have been exempted to pay withholding taxes on import of machinery and special purposes motor vehicles.
Now, the Collector of Customs shall not collect advance tax from the above mentioned companies on the value of the goods.
The FBR has made amendments in the Second Schedule of Income Tax Ordinance after the approval of the Economic Coordination Committee (ECC) of the Cabinet.
