Budget 2021-22; CPEC SEZ enterprises to be exempted from minimum tax

ISLAMABAD, The enterprises of the Special Economic Zones (SEZs) being built under the China Pakistan Economic Corridor (CPEC) are proposed to be exempted from the minimum tax for the year of 2021-22 and onwards.

The minister for finance and revenue Shaukat Tarin in his budget speech here on Friday said the SEZs are a key project of the mega CPEC project. He said the SEZ enterprises were earlier exempted from tax however under the law, they are still liable to pay minimum tax on their turnover which was causing hardship to the investors.

The minister said the government has set its priorities of implementing the CPEC projects, besides constructing and operationalizing the SEZs under CPEC during the upcoming fisal year.

He said the PTI government has showed its commitment to speed up the projects under CPEC.

So far 17 mega projects have been completed at a cost of US$13 billion while 21 more projects of $21 billion are in the pipeline. Besides, he said the 26 projects valuing $28 billion of strategic nature are also in planning stage.

In the budget 2021-22, he said the government has prioritize six projects under CPEC include completion of Karachi-Lahore Motorway, the 120 kilometers Havelian-Thahkot road phase-I, the second phase of Karakoram highway, Zhob-Kuchlak road, and expansion and construction of Chitral-Boni-Mustoj-Shundor road.

He said the construction of Main line -1 of Pakistan railways and construction of dry port phase-I near Havelian are also the government’s key priorities during the upcoming year.