Government providing tax concessions on setting up new businesses: Rana Afzal Khan

Federal Minister for Finance, Revenue, and Economic Affairs Rana Muhammad Afzal Khan Wednesday said that the government had provided the tax concessions on setting up new industries/ businesses including exemption from sales tax in respect of capital equipment including plant, machinery, equipment and accessories for the projects and development of Special Industrial and Economic Zones.

Speaking in the Senate during question hour, the minister said presently, there was no such proposal under consideration of the government to reduce duties/taxes on setting up of new industries and businesses.

He said that the plant, machinery and equipment imported for setting up fruit processing and preservation units in FATA, Gilgit-Baltistan, Balochistan Province and Malakand Division upto the 30th June, 2019 had been granted exemption from sales tax while the import of plant, machinery and production line equipment used for the manufacturing of mobile phones by the local manufacturers of mobile phones duly certified by the Pakistan Telecommunication Authority have also been granted exemption from sales tax.

The exemption from sales tax to machinery and items for mine construction, for Thar Coal

Field, for power generation projects, 22 power transmission projects, for marble, granite and gems stones extraction and processing industries has been provided, he added.

Replying to a question, the minister informed the upper house that proposals for granting exemption/reduction in duties and taxes were considered during the budget exercise and any proposals for further reduction might be considered at the time of finalization of Finance Bill, 2018.