Green Line Bus: Rs 16 billion project to be set up in Karachi by government: minister

Finance Minister Ishaq Dar Saturday said that on the demand of Sindh government, the federal government would establish Green Line Bus transit system at a cost of Rs 16 billion by December 2016. "The Green Line Bus will operate between Saddar and Surjani Town and 300,000 passengers will be able to commute per day through this mass transit facility," said the minister while talking to media.
The federal, provincial governments and private sector would each establish a commercially viable line. It is the responsibility of the provincial government to resist bus mafia, etc, and ensure the success of the Green Line Bus project, Minister added. The minister said that rehabilitation of Temporarily Displaced Persons (TDPs) would cost Rs 80-100 billion ie 0.3 percent of the GDP. About Rs 20-25 billion would be mobilized through levy of a one-time tax on the affluent and rich individuals, association of persons and companies earning income above Rs 500 million in tax year 2015 at a rate of 4% of income for banking companies and 3% of income for all others. He said that the number of affluent and rich individuals, association of persons and companies earning income above Rs 500 million is no more than 200 including 170 companies and a few individuals. The Minister said that Rs 46 billion were released in the current financial year while Rs 100 billion is estimated for 2015-16.
The minister said that delegations of Pakistan Tehreek-e-Insaf (PTI), Awami National Party (ANP) and Chamber of Commerce had met him and proposed incentives for Khyber Pakhtunkhwa. The economy of Khyber Pakhtunkhwa has suffered immensely due to terrorism and efforts are needed to counter it. In order to revive the economy of the province and provide relief to the people several measures have been proposed in the budget for 2015-16.
Dar said that a five-year Income Tax holiday has been proposed on all new manufacturing units set up in KP between 1-7-2015 and 30-6-2018. Such units shall also be exempted from payment of turnover tax for five years. To address the demand of traders and to facilitate exports from KP to Afghanistan, exports of perishable goods namely fruits, vegetables, dairy products and meat are proposed to be allowed against Pak currency instead of dollars w.e.f. 1-7-2015. Quota for ghee and vegetable oil under DTRE for export to Afghanistan and Central Asia is proposed to be enhanced from 1000 metric ton every 90 days to 1000 metric ton per month. The legacy issues regarding minimum tax payable on turnover under the previous KP package available for tax years 2010 to 2012 shall also be resolved. Minimum Income Tax is leviable under the existing law; however to address the hardship of KP businessmen suitable amendments will be made. The Finance Minister said the pending issue of Sales Tax refunds payable as a result of the package would be resolved latest by 30th September, 2015.