Gwadar Free Zone to be Tax Free – Latest Update
Government has washed out the uncertainty by announcing tax concession in Gwadar Free Zone under CPEC. The decision of granting tax concession in Gwadar Free Zone is being decided in meeting of National Development Council (NDC) held in Islamabad. The NDC meeting was chaired by Prime Minister Imran Khan and has announced tax concessions to business units set up at the Gwadar Free Zone under CPEC.
Government Announces Gwadar Free Zone to Be Tax Free
Tax concession of Gwadar Free Zone was a matter remained in limbo for last three years over fears that the move would adversely impact other economic zones of country. Gwadar Port Concession Agreement was part of contract with Singapore.
Later the tax holiday for Gwadar Port operators and the businesses was also part of deal when the China Overseas Ports Holding Company Limited (COPHCL) took over the Gwadar in 2013. A 23 years tax holiday was already awarded to the port operator and now the sitting government has offered similar opportunities to Gwadar Free Zone and industrial units as well.
The NDC meeting was held in Islamabad on August 8 chaired by Prime Minister while Chief of Army Staff Gen. Qamar Bajwa also attended it. The sources said finance adviser Hafeez Shaikh had assured NDC that the matter of Gwadar Free Zone tax concession would be resolved soon.
The sources said that because of the NDC’s intervention, the matter would soon land in the Economic Coordination Committee (ECC) of the Cabinet for approval. Earlier, Shaikh had instructed the Ministry of Finance to fast-track the process but the matter remained unresolved.
Gwadar Free Zone Project – Brief Intro
Tax concession granted for Gwadar Free Zone offers great opportunity to business entities and industrialists interested to invest in Gwadar or want to plant business in Gwadar Free Zone. Gwadar Free Zone aims establishing backup port industry for Gwadar Port.
Currently a large area in Gwadar has been reserved as Free Zone and export processing zones in the industrial locations of Gwadar. Land has already been acquired for these purposes and details of lands are given as under:
- Gwadar port free zone: 2,280 acres land
- GIEDA industrial zone: 3,000 acres land
- EPZA export processing zone: 1,000 acres land
Gwadar Free Zone Development
Infrastructural development of Gwadar Free Zone is underway. Development works on industrial zones including access roads, internal roads, water, gas, power, custom facilities, fencing, security, some warehouses, office and other allied infrastructure are also going in process.
Gwadar Industrial Estate Development Authority (GIEDA) is already reputed for the bigger investment returns. Investing in GIEDA bigger land cuttings promises handsome rewards that no other property in Gwadar has in future.
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