Withdrawal of tax concessions on CPEC projects proposed

To meet the conditionalities of the International Monetary Fund (IMF), proposals have been prepared to withdraw all the tax exemptions given to the projects under China Pakistan Economic Corridor, reported 24NewsHD TV channel on Thursday, quoting sources in the Federal Bureau of Revenue (FBR).

According to the sources, it has also been recommended to withdraw the tax incentives given to the Chinese company and also take back tax concessions given to Orange Line Train in Lahore.

The Chinese company running the Orange Line Train now faces prospects of paying more tax as the proposal is to increase the tax on it from six percent to seven percent. The withdrawal of tax incentives to the Chinese company also proposed.

The sources also divulged that it has also been recommended to enhance the tax on the commercial contracts of the Chinese company.

The proposal to withdraw tax incentives from the Chinese company will be made part of the Finance (Amendment) Bill which will soon be presented in the National Assembly, the sources added.

Reporter Waqas Azeem