Federal government announces 20 years tax holiday

Federal government announces 20 years tax holiday

ISLAMABAD - The government has announced a 20-year tax holiday and exemption from all duties and taxes for investors that will set up deep-conversion oil refineries, which will specifically facilitate consumers of central Punjab near Lahore.

Though the incentives have been offered to all investors, Pak-Arab Refinery Limited (Parco) and China will particularly benefit from the move.

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This came after Pakistan and China signed a memorandum of understanding (MoU) in the second week of April for building the South-North gas pipeline, an upcountry deep-conversion oil refinery and a crude oil pipeline.

Another MoU was inked between Pakistan State Oil and Power China for construction of the upcountry deep-conversion oil refinery and laying the crude oil pipeline.

The tax break and duty exemption were approved in a meeting of the Economic Coordination Committee (ECC) of the cabinet, chaired by Abbasi, at the Prime Minister’s Office on Friday.

In an effort to stimulate investment in the country, the ECC approved a landmark incentive package for setting up new state-of-the-art deep-conversion oil refineries anywhere in the country including the expansion of existing refineries by a minimum of 100,000 barrels per day.

The package will also be applied to the Parco coastal refinery project.