ISLAMABAD: Federal Board of Revenue (FBR) has allowed exemption from withholding income tax to a Chinese company on import of construction material amounting up to Rs10,898,000 million.
The FBR has issued SRO 79(I)/2018 to allow the exemption to China State Construction Engineering Corporation (M/s. CSCEC) for construction of motorway under China Pakistan Economic Corridor (CPEC). The exemption has been allowed in pursuance to the approval of the Economic Coordination Committee of the Cabinet on December 22, 2017.
The FBR amended Second Schedule of Income Tax Ordinance, 2001 saying: “The provisions of Section 148 of the Income Tax Ordinance, 2001 shall not apply for import of construction materials or goods up to a maximum of 10,898,000 million rupees imported by M/s. CSCEC for construction of Sukkur-Multan section of Karachi-Peshawar Motorway project of National Highway Authority under CPEC.”
