ISLAMABAD: Balochistan’s Gwadar district is likely to be granted a tax-free status under the Gwadar Smart Port City Master Plan, WealthPK reported.
It is to be recalled here that the Balochistan government had approved the Gwadar Port City Master Plan 2050 in 2019. It was formally announced in February 2020.
Rigorous brainstorming sessions were conducted by the government to thrash out the micro details of the plan’s governance model.
Under the China-Pakistan Economic Corridor, the strategically-located Gwadar has been transformed into a newly-developed port city, serving as a regional connectivity centre. With its natural deep-sea port, Gwadar will also play an important role along the 21st Century Maritime Silk Road, benefiting not only China and Pakistan, but also Central Asia, East Asia, Russia, and the broader Eurasian region.
Under the master plan, the Gwadar Development Authority (GDA) also plans to build a special economic district (SED) with a tax-free status.
It is recalled here that Rs24 billion were allocated under the old Gwadar master plan, which was to run from 2004 to 2014.
According to the new master plan, the coastal city will generate 1.2 million skilled workforce and rake in over $30 billion economic output.
It is to be noted here that construction of the port’s infrastructure has already been carried out by the China Overseas Port Holding Company (COPHC).
The Gwadar Free Zone Phase-II, which will house manufacturing and service industries, enjoys tax concessions and other incentives under the Federal Board of Revenue’s Gwadar Tax Free Zone Rules, 2021.
According to the FBR draft rules, a goods declaration in respect of goods imported for a free zone along with other documents shall be presented by an investor to the bureau. The exemption granted under the Customs Act and Gwadar Port Authority Ordinance, 2002, are applicable to the plant, machinery, equipment, apparatus and materials to be used solely within the limits of the free zone and to goods imported into the zone by investors.
The GDA’s planned SED aims to provide the same benefits and incentives to foreign investors as available in the special economic zones across the country.
Under the regulatory framework, duty/tax-free cars may be imported by the concession holder – COPHC – which oversees the building, development and operation of the Gwadar Port and the tax-free zone region.
INP
