GWADAR: Federal Board of Revenue and Board of Investment are working out to a privileged tax policy for Gwadar port. A copy of the presentation made by Managing Director Gwadar Development Authority Dr Sajjad Baloch to the Balochistan development forum shows that preferential tax being envisaged including exemption of customs duty on import of machinery, equipment and other items for setting up power plants, water plants and other infrastructure projects within a radius of 30Km of the port.
There would be exemption of entire customs duty for concession holders for construction and operation of Gwadar port as well as development of a free-zone for import of material and equipments, which are manufactured locally. Moreover, there would be only a 5 percent customs duty for a hotel. GDA has urged the Federal government to implement cabinet decision with respect to coal import through Gwadar port for making the port functional.
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Dr Sajjad urged the Federal government to implement the Cabinet decision. He stated that he as the MD has suggested various measures as a way forward for making the port functional. He went on to state that Afghan transit trade should be diverted to Gwadar port.
“There is a need that substantial investment should be made in basic infrastructure development,” he said, adding that road, rail and air links connectivity is critical for access to mineral rich area and Afghanistan as well as Central Asian Republics (CARs). According to documents, electricity demand for Gwadar would increase to 130MW by 2020 from existing demand of 40MW. Current electricity requirement of 40 MW for Gwadar is being met through import of electricity from Iran. The government imports 70MW electricity from Iran through Gwadar. Pakistan is expected to seek Chinese help for social sector development and a memorandum of understanding (MoU) to this effect is being prepared.
