Federal govt grants massive tax exemptions to IP, TAPI gas pipeline projects

 
166

 

ISLAMABAD, June 11 (TNS): In a major development the federal government has granted billion of rupees income tax, sales tax and custom duties exemptions, to cross borders Iran Pakistan (IP) and Turkmenistan Afghanistan, Pakistan India (TAPI) gas pipeline projects.

The exemption granted by the Economic Coordination Committee of the Cabinet would also be available to RLNG III Pipeline project (RLNG-III) or any other project declared as Large Diameter Gas Pipeline Project by the Ministry of Energy Petroleum Division.

The ECC granted these exemptions in its meeting held on 30th May 2018. According the minutes of the ECC meeting available with The Nation, in its summary the petroleum division requested the exemption from custom duty in excess of 5 percent ad valorem leviable under the first schedule to the Customs Act 1969 and whole of sales tax leviable under the Sales Tax Act 1990 on import and subsequent supply of plant, machinery, equipment, materials, specialized vehicles or vessels, accessories, spares, chemicals consumable as are not locally manufactured by developers, contractor and service companies of North South Gas Pipeline (NSGP), Turkmenistan Afghanistan, Pakistan and India (TAPI)gas pipeline, Iran-Pakistan Pipeline( IP), RLNG III Pipeline project (RLNG-III) or any other project declared as Large Diameter Gas Pipeline Project by the Ministry of Energy Petroleum Division.

Similarly exemption from custom duty in excess of 10 percent ad valorem leviable under the First schedule to the Customs Act 1969 and whole of sales tax leviable under the Sales Tax Act 1990 on import and subsequent supply of plant, machinery, equipments, materials, specialized vehicles or vessels, accessories, spares, chemicals consumable as are locally manufactured by developers, contractor and service companies of above projects was also requested by Petroleum Division.

Exemption from whole customs duty and sales tax on import and subsequent supply of HR coils, line pipe, pylons/pile, whether or not manufactured locally, by the developer and contractors of above projects was also requested.

Exemption from duties and taxes on import of machinery, equipment, vessels, dumpers, specialized vehicles, accessories, and spares and all other items essentially required for the above projects on import-cum-export basis for a period of five years, further extendable on payment of 1 percent surcharge per year was sought by the Petroleum Division.