ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday notified a tax exemption on profits and gains of any industrial unit in the Gwadar Export Processing Zone (EPZ) for a period of 10 years.

The exemption will commence from the time the industrial unit is set up or begins commercial operations.

The FBR also notified that industrial units established in the Gwadar EPZ would be allowed to sell 50 percent of their produce in the local market, compared to 20 percent previously.

The remaining produce can be exported as per the producer’s preference.

Earlier, the industrial units located in the Gwadar EPZ needed to export 80 percent of their production for availing tax exemptions and incentives.

The FBR issued SRO 606(I)/2009, which amended the Second Schedule of the Income Tax Ordinance and added a new clause, 126-D, after clause 126-C.

The FBR also issued a notification SRO 612 (I)/2009 that amended the Customs Rules.

According to newly-added clause IV, the licensee may procure duty-paid input goods manufactured locally in addition to duty-free input goods for the production of finished products.

If duty drawback and rebate of federal excise duty are admissible on exports of such finished products on the basis of standard duty drawback and rebate notification, the value for claiming duty drawbacks and rebates would be the products’ value less the value of the duty-free input goods.

Source: Daily Times