FBR grants Reko Diq Mining Company CVT relief

According to the Finance Act 2022 and the Federal Board of Revenue (FBR), Reko Diq Mining Company does not have to pay capital value tax (CVT). This was reported by news sources on December 13.

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In this way, FBR sent out SRO.2200(I)/2022 on Monday to let people know about changes to the Finance Act of 2022. According to the notification, Section 8 of the Finance Act of 2022 says that the federal government can exempt any asset or group of assets from tax by putting a notice in the official gazette. This is subject to any conditions that may be set.

With this change to the rules, 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 capital value tax (CVT) due under sub-section (1) of Section 8 of the Finance Act 2022.

The Supreme Court bench recently said that the agreement between the government and the TCC was legal. This caused the government to send out a notice giving the TCC special exemptions from mineral proceeds.