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Saturday, March 13, 2010

PM approves revised incentives package for NWFP, FATA

ISLAMABAD, Mar 13: Prime Minister Syed Yousuf Raza Gilani has approved a revised package giving more incentives to business community of the NWFP to rehabilitate the economic life in the NWFP, FATA and PATA.

Under the revised package prepared on the basis of recommendations of Sarhad Chamber of Commerce and Industry Federal Execise duty on goods produced and supplies made will be reduced to zero from Ist January,2010 in FATA and most affected areas and 50% of the leviable rate in moderately affected areas.

The FBR will consider reduction in duty on Afghan Transit Goods. Marble sector’s share in export development funds will be released by the Ministry of Commerce. Exports of Plastic Venial Coated and High Density Poly Ethylene pipe and fitting products through Ghulam Khan Check post will be considered by FBR.

Income Tax exemption for small traders of Most and moderately affected areas will be enhanced from Rs one lac to Rs 3 lac for Tax years 2010-2011 .

One Ghee factory in Bajaur and one in South Waziristan will be handed back to the owners and their past liabilities will be waived off. The proposal for allowing edible oil imports under Duty Taxes Remission on Export will be taken by FBR with Ministry of Commerce and other stake holders and a summary submitted to ECC for orders. FBR will allow 100% refund on the export of vegetable ghee/cooking oil to Afghanistan subject to the condition that Exporting Units provide proof of 100%imported oil.

The package provides for the establishment of small traers chamber. Audit cases in NWFP will be selected after Board’s approval. The process of Alternate Dispute Resolution Committee will be expedited.

The Government will consider exemption of plant and machinery from import taxes and three years holiday from income tax.

For existing business loans (Corporate, SMEs, agriculture and Micro) excluding loans to Cigarette, textile, cement, sugar and beverages sectors, banks will be advised to charge mark up @ 7.5 per annum or at KIBOR, whichever is lower for next two years. The differential between 7.5% and rate charged would be borne by Government of Pakistan as subsidy through budgetary allocation or by authorizing State Bank to deduct cost of subsidy from its remittable profit to the Government.

There will be total write off of loans including microfinance in Buner, Swat, Malakand and Chitral. In this regard, banks will bear the cost of such write offs to the extent of amount held in to provision and interest in suspense account while the rest of the cost will be borne by the Government.

State Bank will devise a concessional refinance scheme for loans upto Rs 5 lacs in consultation with the representative of trade bodies. Such loans will be partially covered under Credit Guarantee Scheme. For this purpose Government will transfer funds of Rs 2.5 billion allocated for CGS to State Bank.

Additional incentives agreed by NWFP Government and other Federal Ministries include tax exemption including property tax to educational institutions.

Crises management/trauma centre will be established in Peshawar as a Joint Venture with 50-50 sharing.

Compensation for dead and injured in terrorist incidents would e the same across the Province.

All industries occupied by the security agencies will be vacated.

Under the revised package, complete waiver in electricity and gas bills has been allowed in Malakand Division from September, 2009 to December, 2009. Also NWFP will be given priority in provision of electricity and gas.

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