Foreign SEZ investors to enjoy full ownership benefit in Pakistan

[Kabira]

ISLAMABAD:

The federal government has decided in principle that foreigners who invest in Special Economic Zones (SEZs) will be entitled to 100 per cent ownership and there will be no condition regarding the minimum amount of investment. A high-level committee has also been set up to review a proposal that non-resident Pakistanis be given a tax holiday on all kinds of income on investments including property, capital gains, dividends and profits on loans.

It has also been decided that investors in SEZs will be allowed to take abroad 100 per cent of their profit money.

According to a document made available to The Express Tribune, the government has decided to introduce Amendments in the Special Economic Zones Act under which the privilege package finalized for SEZs will be made part of the investment policy.

According to the document, it has been decided in principle that, in the proposed privilege package to promote investment in SEZs, 100 per cent foreign ownership will be given to those investing in sectors included in the SEZs’ priority list and that this will be made part of the Special Economic Zones Act. The document further states that it has also been decided that the Board of Investment (BOI) will provide the justification, in consultation with the Federal Board of Revenue (FBR), as to why 100 per cent foreign ownership cannot be allowed in certain sectors.

The document elaborates that the FBR and the BOI will prepare recommendations on the tax holiday proposal for non-resident Pakistanis. The committee will include representatives from the BOI, the Ministries of Finance and Industries & Production, and the FBR. The BOI has nominated CPEC Investment Board Project Director Asim Ayub as the focal person for the committee.

It has also been decided that the FBR and the Ministries of Finance, and Industries and Production will also appoint focal persons for the committee.

The committee will present a report on the tax exemption proposal for non-resident Pakistanis. Similarly, it will also present a report on taxes for residents on income from other sources under the Income Tax Ordinance 2001.
https://tribune.com.pk/story/2073732/1-foreign-sez-investors-enjoy-full-ownership-benefit-pakistan/

 

[khansaheeb]

At last things to make the rich even richer in PAKISTAN, bad time to be poor in Pakistan.

 

[Viny]

ISLAMABAD:

The federal government has decided in principle that foreigners who invest in Special Economic Zones (SEZs) will be entitled to 100 per cent ownership and there will be no condition regarding the minimum amount of investment. A high-level committee has also been set up to review a proposal that non-resident Pakistanis be given a tax holiday on all kinds of income on investments including property, capital gains, dividends and profits on loans.

It has also been decided that investors in SEZs will be allowed to take abroad 100 per cent of their profit money.

According to a document made available to The Express Tribune, the government has decided to introduce Amendments in the Special Economic Zones Act under which the privilege package finalized for SEZs will be made part of the investment policy.

According to the document, it has been decided in principle that, in the proposed privilege package to promote investment in SEZs, 100 per cent foreign ownership will be given to those investing in sectors included in the SEZs’ priority list and that this will be made part of the Special Economic Zones Act. The document further states that it has also been decided that the Board of Investment (BOI) will provide the justification, in consultation with the Federal Board of Revenue (FBR), as to why 100 per cent foreign ownership cannot be allowed in certain sectors.

The document elaborates that the FBR and the BOI will prepare recommendations on the tax holiday proposal for non-resident Pakistanis. The committee will include representatives from the BOI, the Ministries of Finance and Industries & Production, and the FBR. The BOI has nominated CPEC Investment Board Project Director Asim Ayub as the focal person for the committee.

It has also been decided that the FBR and the Ministries of Finance, and Industries and Production will also appoint focal persons for the committee.

The committee will present a report on the tax exemption proposal for non-resident Pakistanis. Similarly, it will also present a report on taxes for residents on income from other sources under the Income Tax Ordinance 2001.
https://tribune.com.pk/story/2073732/1-foreign-sez-investors-enjoy-full-ownership-benefit-pakistan/

Out of curiosity, is this facility available for Indians also?

 

[PakGuns]

Out of curiosity, is this facility available for Indians also?

except for the likes of kulboshan yadav.... just don't send terrorists here...

 

[WarKa DaNG]

Another way for money laundering?

 

[Dubious]

It has also been decided that investors in SEZs will be allowed to take abroad 100 per cent of their profit money.

That's not beneficial. What are we going to gain?

 

[Jinn Baba]

That's not beneficial. What are we going to gain?

I'm assuming the employment it will generate. But the government must set up conditions (like only hire locals) or there is nothing to prevent the investors from importing labour too like the chinese are with cpec.

 

[Dubious]

I'm assuming the employment it will generate. But the government must set up conditions (like only hire locals) or there is nothing to prevent the investors from importing labour too like the chinese are with cpec.

Exactly my point.

Where are our benefits?

 

[Safriz]

That's not beneficial. What are we going to gain?

That's what I was thinking.
No tax and investors keep all. What will Pakistan get?

 

[AZ1]

It doesnt make sense or tribune understood it wrong from document.

 

[Paul2]

That's not beneficial. What are we going to gain?

Do you understand that any foreign investor is not likely to gain much to begin with if he is to sell locally. If he is setting up a venture for export product, that will be a net gain for Pakistan invariably of how much money the investor sends back.

 

[Viny]

It will create jobs and moving forward local allied industries will support these export houses.
Once the local population learns the business model they will also explore business opportunities, thats how the the business wheels move. Agree its not always in right direction but majorly it brings in long term benefits for local industry kick start.

 

[Samlee]

It will create jobs and moving forward local allied industries will support these export houses.
Once the local population learns the business model they will also explore business opportunities, thats how the the business wheels move. Agree its not always in right direction but majorly it brings in long term benefits for local industry kick start.

Considering The Trade War We Are Expecting Quite A Lot Here

 

[Kakaspai]

That's what I was thinking.
No tax and investors keep all. What will Pakistan get?

and here we are crying about forex reserves[emoji24]

 

[Syed1.]

Exactly my point.

Where are our benefits?

If they are selling their product in Pakistan earning in ruppees and then repatriating their profits abroad in dollars then it is the worst decision ever.

However, if they are only exporting then the government of Pakistan earns precious dollars, Pakistanis get skilled employment, the industrial base of the country increases and local companies take up the challenge to compete against these foreign firms. The scale of profit being repatriated will never be as great as the export earning hence Pakistan is net beneficiary.