The federal government in the fiscal budget for 2015-16, has announced five years Income Tax holiday on all new manufacturing units, set-up in Khyber Pakhtunkhwa, will be exempted from payment of turnover tax. "The economy of KPK has suffered immensely due to terrorism and this is an effort to counter it. In order to revive the economy of KPK and to provide relief to the people, some measures will be taken," said Federal Minister Ishaq Dar, according to budget speech.
He said those measures include, to address the demand of traders and to facilitate exports from KPK to Afghanistan, exports of perishable goods namely fruits, vegetables, dairy products and meat are proposed to be allowed against Pakistani currency instead of dollars with effect from 1-7-2015.
"The quota for ghee and vegetable oil under DTRE for export to Afghanistan and Central Asia is proposed to be enhanced three times from 1000 Metric Ton per 90 days to 1000 Metric ton per month," he added. The legacy issues regarding minimum tax payable on turnover under the previous KPK package available for tax years 2010 to 2012 shall also be resolved, he added. "The minimum Income Tax is levy able under the existing law. However, to address the hardship of KPK businessmen, suitable amendments, should be made," Dar said. The minister said the pending issue of Sales Tax refunds payable as a result of the above mentioned package shall be resolved latest by 30th September, 2015.
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