ECC approves package for new Deep Conversion Oil Refinery projects
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ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet has approved a landmark incentive package for setting up new state-of-the-art Deep Conversion Oil Refinery Projects.
Its meeting, chaired by Prime Minister Shahid Khaqan Abbasi in Islamabad on Friday, approved the package to attract investment in the sector.
It would be applicable to expansion of existing refineries of minimum 100,000 barrels per day capacity, beside PARCO Coastal Refinery Project.
The incentive package includes 20 years income tax holiday, exemption from all duties, taxes, surcharges and levies on import, by the Refinery Project.
It also includes exemption from withholding tax and all other duties, taxes, surcharges, levies and import relating to foreign contractors and subcontractors and their personnel.
Similarly, sales tax and excise duty on supply of locally manufactured building and construction of material, equipment and service for setting up of Refinery would also be exempted.
New Refinery projects would be given a pricing mechanism which would be no less favorable than the prevailing mechanism.
The package also grants waiver to applicable Development Surcharge on the value of exports in case Refinery Project is set up in Export Processing Zone.
This decision will facilitate establishment of new state-of-the-art refineries in any part of the country Pakistan. APP/AFP
