Tax concession bill for the year 2020-21 was approved with an absolute majority for Gwadar port and Gwadar free zone. Subsequently, by the senate finance committee on Tuesday. The committee proposed an increase in employment rate and development of the area. As a result of the acceptation of the finance bill, meeting was also attended by the secretary of maritime affairs.
Earlier this month the maritime affairs secretary confessed the concession bill was priory scheduled for 20 years not 40 years. as was mentioned in the bill. However, there was no availability of tax reduction for the subcontractors whereas the port operators were granted tax holidays. It was disclosed on a bureaucratic meeting to discuss the future of Gwadar port agreement with China.
The maritime affair secretary was confronted as the federal board of revenue disclosed that there was an initial 40-year holiday for all sectors. On the suggestion of the maritime affairs ministry. However, all these claims were rejected by the maritime secretary who said there was no agreement on 40 years of tax holidays. Furthermore, he added that subcontractors were not eligible for tax holidays.
Secretary Ahmed claimed under the clause 7.1.1 only the concession holders and its lenders will have 20 years of tax relief. The committee chairman called the ministry of maritime affairs ‘confused’ and ‘’out of order’ for misguiding the committee on tax relief for the sub-contractors of the contractors