ISLAMABAD: Pakistan makes key assurances to China on the Sales Tax exemption and other taxes exemption over Gwadar Port, Gwadar Free Zone, Media report has revealed.
Pakistan has assured China that it will provide Sales Tax exemption for 23 years and other tax exemptions on equipment and material purchased locally for industrial units established in the Gwadar Free Zone.
According to official documents, both Pakistan and China welcomed the progress of the construction of the Initial Zone of Gwadar Free Zone.
Both the sides agreed that further efforts were needed for business attraction explicitly stipulating sales tax exemption for 23 years and tax exemption on equipment and materials purchased in Pakistan locally.
Pakistan and China also agreed that active efforts such as local tax breaks in the Balochistan province and the provision of fiber optic communication by the Pakistani side were needed to address the development hurdles of the Gwadar Port and the Free Zone.
Pakistan would offer the concessions in a piece of legislation to be tabled before the Parliament for promulgation into an act.
Both the sides agreed to the need of fast execution of Gwadar infrastructure and assistance projects including the New Gwadar International Airport (NGIA), Gwadar Vocational and Training Centre, expansion of China-Pakistan Government Faqeer Colony Middle School and construction of the Pak-China Friendship Hospital and Eastbay Expressway.
To advance the integrated development of Gwadar Port and the Gwadar region, both the sides expressed satisfaction over the progress of Gwadar Free Zone development.
The Phase-I of Gwadar Free Zone has been completed with all the plots leased out to more than 30 Pakistani and Chinese investors registered in the Free Zone.
The annual Gwadar Expo, Gwadar Marble and Mineral Exhibition and other business events have been promoting Gwadar as an emerging regional economic hub of Pakistan.