The federal government has reinstated tax breaks for seven CPEC power facilities. According to press reports, the federal authorities reinstated the tax exemption for the seven power plants being built as part of the China-Pakistan Economic Corridor (CPEC) project on June 7. The tax break will be officially announced on June 10, when the budget is set to be released.
According to sources, the following power facilities are exempt from paying heavy machinery import taxes:
Kohala Hydro Company (Private) Limited, with a capacity of 1,124 MW (date of IA execution: May 25, 2020)
Azad Pattan (Private) Limited has a capacity of 700.7 MW (date of IA execution) July 6, 2020
SK Hydro (Private) Limited has a capacity of 870.25 MW (date of IA execution: April 11, 2014).
CHIC Pak Power Company (Pvt.) Limited has the capacity to generate 300 MW of energy (date of enactment: April 8, 2021).
Thal Nova Power Thar (Private) Limited, with a capacity of 330 MW (date of IA execution November 24, 2017)
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The Thar Coal Block-1 Power Generation Company (Private) Limited has a capacity of 1,320 MW (date of IA execution: December 12, 2019).
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However, the government has stated that in order to obtain tax-free status, businesses must meet the following criteria:
An Implementation Agreement will be signed between GOP and the company (IA).
The contractor must provide a copy of the contract or agreement he will use to bring products into the nation for the project.
The CEO or head of the contracting organization must sign off on the fact that the imported products are a genuine project requirement.