KARACHI: Government is planning to exempt Port Gwadar from sales tax and excise duty as well as facilitating the Chinese ships for forty years in excise duty in the upcoming budget 2016-2017. Gwadar Port and free business zone are being developed as part of the greater China-Pak Economic Corridor (CPEC).
According to the source, the government has already approved 23-year tax goliday for the new businesses to be established in the free zone under Gwadar Port Concession Agreement for operation and development of Gwadar Port.
The source informed that the Chinese ships at the Gwadar Port will also be facilitated for forty years with regards to excise duty. On the other hand, tax holiday for the free zone at Gwadar Port is aimed at attracting foreign investment and encouraging local investors to opt for this tax-incentive to start new business in this mega port that is being seen as the future of Dubai in Pakistan.
By exempting Gwadar Port from sales tax and excise duty, facilitating the Chinese ships for forty years in excise duty and 23-year tax holiday will allow to enhance the revenue generation as well as making the Gwadar Port operational as soon as possible.
