ISLAMABAD: The federal government has formally exempted the projects under China-Pakistan Economic Corridor (CPEC) from all customs duties, levies and other relevant taxes.
The Ministry of Finance, Economic Affairs, Statistics & Revenue, after gaining the approval of the Economic Coordination Committee (ECC) of the Cabinet, has now issued a notification pertaining to the exemption of a motorway project related to the CPEC from taxes in order to import equipment and construction material.
The government has granted a sales tax exemption for the imported equipment and the construction machinery required for the construction of the Karachi – Peshawar Motorway and the Karakorum-Highway (KKH).
“The federal government is pleased to direct that all equipment and construction machinery, if not manufactured locally, imported by M/s China State Construction Engineering Corporation Limited (M/s CSCECL) for the construction of Karachi – Peshawar Motorway (Sukkur – Multan Section) and M/s China Communication Construction Company (M/s CCCC) for the construction of Karakorum Highway (KKH) Phase-ll (Thakot – Havellian Section), shall be exempted from whole of sales tax for the purpose of the said Act subject to fulfilment of same conditions, limitations and restrictions as are stipulated under the Federal Government’s Notification No SRO 642(I)/2016 for availing exemption from levy of customs duty S.R.0. (I)/2016,” said a notification issued by the FBR.
