According to newspaper reports, the government has decided to grant income tax exemptions to the newly-established companies in energy and food sectors to improve industrialisation and overcome energy crisis in the country. The government has already exempted certain businesses from paying income tax on total gains and as the first step, it has extended the exemption period on the income of China Overseas Ports Holding Company Limited from 20 years to 23 years. The government has also allowed tax exemption to a transmission line project for 10 years. According to economists, the Pakistani government always takes belated steps aimed at to improving the economic conditions in the country. Bangladesh had started giving tax relief to foreign investors 10 years ago and its economy is now improving by leaps and bounds. China and Vietnam have adopted the same policy and are creating history in the world of economy. God knows what Pakistani policy makers need to awaken them from deep slumber.
Pakistan is a major wheat producing country, but no effort has been made to introduce an international brand of wheat biscuits. The country produces best quality fans and it can enhance its exports to Arab and African countries, but our commercial attaches sitting in the embassies are only interested in drawing salaries and perks. The main thrust of the Pakistani missions abroad should be business and politics should be given a secondary status. The missions should work as driving force and marketing entities to introduce the indigenous products in the host countries. Though the government has exempted the companies from income tax which are working on the transmission line projects, but this step is not enough. There is a need to establish large and small tax-free industrial estates across the country and invite foreign investors to establish their industrial units in a perfect business environment.
It is good omen that the government has allowed income tax exemption on profit and gains derived by liquefied natural gas terminal operators, terminal owners and industrial undertakings engaged in the manufacturing of equipment, plant and items required to produce solar and wind energy. The government has also awarded income tax exemption for five-year to the companies, which set up Halal meat production plant and obtain Halal meat certification by December 31, 2016. Though the steps taken by the government are very small in nature, but will have big impact on the economy. There is a big space in Pakistan to involve the world investors to do business in Pakistan.
