Incentive Data

No Sales Tax on import/supplies of Materials and Equipment for Businesses in Gwadar Free Zone

Notwithstanding the provisions of section 3, supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the [Federal Government], be exempt from tax under this Act, read with Sixth Schedule of Sales Tax Act 1990: (as below)

Sr. No. Description Heading Nos. of the First Schedule to the Customs Act, 1969 (IV of 1969)
(1) (2) (3)
100B Supplies made by the businesses to be established in the Gwadar Free Zone for a period of twenty-three years within the Gwadar Free Zone, subject to the condition that the sales and supplies outside the Gwadar Free Zone and into the territory of Pakistan shall be subjected to sales tax. Respective headings
100D Machinery, equipment, materials and goods imported either for exclusive use within the limits of Gwadar Free Zone, or for making exports therefrom, subject to the conditions that such machinery, equipment, materials and goods, are imported by investors of Gwadar Free Zone, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (Act IV of 1969) and rules made thereunder shall, mutatis mutandis, apply provided that if any of such goods is taken out of the Zone for purpose other than the export, the tax on the same shall be paid by the importer.]  

Source*: (Section 13(1) of the Sales Tax Act 1990 read with Sixth Schedule of the Sales Tax Act 1990.)