Federal government reinstates tax exemption for 7 CPEC power plants
Federal government reinstates tax exemption for seven CPEC power plants. On June 7, news sources said that the federal government had restored the tax exemption for the seven power plants being built as part of the China-Pakistan Economic Corridor (CPEC) project. The official announcement of the tax break will come on June 10, when the budget is due to be released.
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According to reports, the following power plants do not have to pay import taxes on heavy machinery:
Kohala Hydro Company (Private) Limited, which can make 1,124 MW of electricity (date of IA execution: May 25, 2020)
Azad Pattan (Private) Limited, with a generating capacity of 700.7 MW (date of IA execution) July 6, 2020
SK Hydro (Private) Limited can make 870.25 MW of electricity (date of IA execution: April 11, 2014).
CHIC Pak Power Company (Pvt.) Limited can make 300 MW of electricity (date of enactment: April 8, 2021).
Thal Nova Power Thar (Private) Limited, which can produce 330 MW of electricity (date of IA execution November 24, 2017)
Read: Making progress on the Gwadar Free Zone is essential for economic growth: Minister Ismail Thar Energy Limited, which can make 330 MW of electricity (date of IA execution November 10, 2017)
Thar Coal Block-1 Power Generation Company (Private) Limited can produce 1,320 MW (date of IA execution: December 12, 2019).
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But the government has told companies that to get tax-free status, they must meet the following requirements:
GOP and the company will sign an Implementation Agreement (IA).
The contractor must give a copy of the contract or agreement he will use to bring the goods for the project into the country.
The CEO or head of the contracting company must sign off on the fact that the imported goods are a real need for the project.
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