WHT relief given on imports for power project

The Federal Board of Revenue has exempted withholding tax on the import of goods by contractors and sub-contractors engaged in the execution of power project under the agreement between government of Pakistan and Hub Power Company Limited. The FBR on Tuesday amended the Part-IV (exemption from special provisions) Second Schedule of the Income Tax Ordinance, 2001 for implementation of the decision.
According to the notification, the provisions of section 148, regarding withholding tax on imports, shall not apply in respect of goods or classes of goods for the execution of contract, imported by contractors and sub-contractors engaged in the execution of power project. The notification has been issued to give exemption on the import of said goods under the project from specific income tax provision ie section 148 of the Income Tax Ordinance 2001.