Islamabad: The Federal Board of Revenue (FBR) has agreed to give a 23-year exemption in sales tax to the importers of warehousing goods operating in the Gwadar Free Zone, a news source reported. At the same time, the board has turned down a suggestion of the China Overseas Port Holding Company (COPHC) seeking a 40-year exemption on custom duties and other taxes on import of cars for its operations, as well as for firms operating under it.
Read: NDC to grant tax relief to businesses in Gwadar Free Zone
In wake of this announcement, the COPHC and its subsidiaries would be able to import cars for Gwadar Port and Gwadar Free Zone without paying custom duties and other taxes for 23 years instead of the previously proposed timeframe 40 years. The FBR has also granted exemption in sales tax on the income of the COPHC and its subsidiaries earned via Gwadar Port and Gwadar Free Zone.
Read: Exemption in tax, duties expected for Gwadar Port and Free Zone
For thus purpose, the taxation authority recently sent a summary to the Ministry of Maritime Affairs in which it had sought relief on duties and taxes applicable on business operating from Gwadar Free Zone. The proposals mentioned in the summary are expected to become part of tax laws once the federal cabinet and the Economic Coordination Committee grant their approvals.