950809

6 SROs guarantee

incentives package

for twelve SIZs

KARACHI: Syed Mohibullah Shah, Secretary, Board of Investment, said here that the PPP government is keen to accelerate the process of investment in the country.

Talking to APP, he said for this purpose the government has decided to set up 12 'Special Industrial Zones' in various parts of the country.

The sole purpose of such 'zones' is to attract investment in industrial activities and to promote balanced development through setting up of new industrial towns, he added.

Shah Saheb said for this purpose, the Board of Investment through the Central Board of Revenue has issued six SROs which guarantee the following 'Package' for Investors:

Concessions in Custom Duty and Sales Tax on plant & machinery.

1) SRO dated January 19, 1995 allowing exemption of whole of customs duty and sales tax on such imported plant and machinery which is not manufactured locally and is meant for installation of units in the Special Industrial Zones concessions in customs duty/sales tax on imported raw materials.

2) SRO dated January 19, 1995 allowing exemption of 25 percent customs duty on imported raw material which are not produced locally. In case of new industries the imported raw materials will be completely exempt from customs duty and sales tax for a period of 10 years.

Concession in Sales Tax on production

3) SRO dated January 9, 1995 exempting products of new industries in the 'special industrial zones' from the levy of sales tax for a period of eight years.

Concessions in Excise Duty on end products.

4) SRO dated January 19, 1995 exempting 25 percent Excise Duty on end products of industries established in 'special industrial zones' in case of new industries no excise duty will be charged on end products for a period of eight years.

Exemption from Income Tax

5) SRO dated January 18, 1995 exempting the profits and gains accruing to an assessee from an industrial undertaking in 'Special Industrial Zone' from Income Tax for a period of 10 years.

Exemption from Capital Gains.

6) SRO dated January 19, 1995 exempting the 'capital gains' from taxation for a period of 5 years afer starting commercial production.

The B. I. S. Secretary said besides the exemptions granted under various SROs, the units in the 'Special Industrial Zones' would also have the following facilities:

i) Debit/Equity ratio of 70:30.

ii) Exemption of Octroi and export taxes for local government for 10 years.

iii) Utilities arrangements through one window operation.

iv) Special bounding facilities on the pattern of Export Processing Units.

v) Exemption from Labour Laws, etc.

Talking about the 'zones' Shah Saheb said three of the 'Special Industrial Zones', will be established in Punjab (D. G. Khan, Rahimyar Khan, Lelah), three in Sindh (Larkana, Nawabshah, Port Qasim), two in NWFP (between Dera Ismail Khan & Bannu and between Khairabad and Akora Khattak), two in Balochistan (Quetta & Windher), one in Azad Jammu and Kashmir and one in Northern Area.

He was confident that the investors would take full advantage of these unmatched incentives for investment.

Replying a question, Syed Mohibullah Shah said the government has decided to hold an international seminar sometime in December in which entrepreneurs would be invited from the world to see for themselves the conducive conditions of investment in Pakistan.

He was quite optimistic that the inflow of investment will continue in a big way.-APP