Industrial Policy 2016: KP to unveil attractive incentives to woo industrialists

The provincial government of Khyber Pakhtunkhwa is going to unveil Industrial Policy 2016 to attract investment, promote industrialization and general employment opportunities for the youth of the province. The industrial policy will be announced in a function in federal capital, Islamabad with PTI chief, Imran Khan has chief guest. KP Chief Minister Pervez Khattak, provincial ministers and business community from other parts of the country in general and Khyber Pakhtunkhwa in particular will also attend the inaugural ceremony.
Under the industrial policy, the provincial government is going offer different incentives to woo investors and industrialists for investment in the province. Under the proposed industrial policy the new and expanded industrial units in the Khyber Pakhtunkhwa will get 70 per cent discount on interest rates on financing for five years for new and expansion industrial projects in the province. Out of the total mark-up the provincial government will bear 5% of the existing interest rate.
Similarly, the investors will get 25% discount on acquisition of land in new industrial estates (initial 2 years), 25% refund of electricity bills on special and unique industrial units for a period of three years and 25% discount on transport cost of the newly imported machinery from Karachi port to the site. All the new industrial estates will be declared as Special Economic Zones (SEZs) under SEZA act to entitle them to tax, customs and excise incentives, which include exemption from customs duties and taxes on import of capital goods/plants and machinery to special economic zones for installation therein.
Exemption from all taxes on income for a period of 10 years from the date the enterprise starts commercial operations, tax holiday for five years against setting up new industrial units in KP has already been offered for manufacturing units' setup during 1st January, 2015 to 1st January, 2017 in federal budget for 2015-16.