‘Unprecedented incentives’: Ministries reluctant to give approval to transmission line project
Ministry of Water and Power has reportedly failed to get approval of $ 2.1 billion ±660kV (4000 MW) HVDC Mitiari-Lahore transmission line project from the ECC under China Pakistan Economic Corridor (CPEC), as some Ministries are opposing the “unprecedented” incentives extended for the project, well-informed sources told Business Recorder.
PPIB is seeking exemptions from all types of income taxes, sales tax and customs duties including goods that are locally produced and can be supplied for completion of the transmission line project.
The sources further stated that PPIB has also demanded that profits and gains derived by a domestic company from transmission line project should be exempted from standard corporate income tax for a period of 10 years. The Matiari transmission line project should also be exempted from 1.25% minimum income tax and 17% alternate corporate income tax for a period of ten years. The withholding taxes on import of plant and machinery and specialised vehicles should also be exempted for 10 years. However, the most alarming clause was that even the materials that are locally available should also be exempted from customs duties.
Published in Business Recorder, 24th July, 2017