Islamabad: The Federal Board of Revenue (FBR) has granted Reko Diq Mining Company an exemption from paying capital value tax (CVT) as stipulated in the Finance Act 2022, news sources reported on December 13.
In this regard, FBR issued SRO.2200(I)/2022 on Monday, notifying changes to the Finance Act of 2022. As per the notification, under Section 8 of the Finance Act of 2022, the federal government may, by notification in the official gazette, exempt any asset or class of assets from tax subject to such conditions as may be specified.
According to this revision in regulations, the federal government has exempted all assets of the Reko Diq Mining Company (Private) Limited (formerly Tethyan Copper Company Pakistan Private Limited (TCC)) from the whole of the capital value tax (CVT) payable under sub-section (1) of Section 8 of the Finance Act 2022.
Recently, the Supreme Court bench declared the agreement between the government and the TCC as valid, prompting the government to issue a notification granting the TCC special exemptions in mineral proceeds.