Incentive

Sources:

Pakistan Economic Survey 2018-19 under sub heading 3.2
Pakistan Economic Survey 2018-19 under sub heading 3.2
Pakistan Economic Survey 2018-19 under sub heading 8.8
http://www.sbp.org.pk/epd/2018/FECL21-Annex-B.pdf
Duty Drawback of Taxes Order http://www.sbp.org.pk/epd/2018/FECL21.htm
Procedure for Lodgment of Claims http://www.sbp.org.pk/epd/2018/FECL21-Annex-A.pdf Actual Legal Text of Incentive in the relevant Law/Rules/SRO

“Manufacturing bond" means a premises having a proper boundary wall, with clearly defined areas of,

(a) Bonded warehouse;
(b) Manufacturing facility; and
(c) Other stores, licensed by the Collector under rule 343]

Sources:

One time exemption from custom-duties and taxes on import of plant and machinery into SEZ

Explanation of Incentives

Under Special Economic Scheme duty free import of plant and machinery for Developers and Zone Enterprises is allowed. The purpose is to provide incentives to developers and enterprises for enhancing industrialization in the country and to boost export and attract Foreign Investment in to Pakistan.

Actual Legal Text of Incentive in the relevant Law/Rules/SRO

Plant and machinery, except the items listed under Chapter 87 of the Pakistan Customs Tariff, imported for setting up of a Special Economic Zone (SEZ) by zone developers and for installation in that zone by zone enterprises, on one time basis as prescribed in the SEZ Act, 2012 and rules thereunder subject to such condition, limitations and restriction as a Federal Board of Revenue may impose from time to time.

Sources: SEZ Act 2012
Sales Tax Act 1990

Exemption from all taxes on income for enterprises commencing commercial production in the SEZs for 10 years

Explanation of Incentives

Under Special Economic Scheme Corporate Income Tax Holiday of 10 years for developers, co- developer and zone enterprises is allowed. The purpose is to provide incentives to developers and enterprises for enhancing industrialization in the country and to boost export and attract Foreign Investment in to Pakistan.

Actual Legal Text of Incentive in the relevant Law/Rules/SRO

Income derived by a zone enterprise as defined in the Special Economic Zones Act, 2012 (XX of 2012) for a period of ten years starting from the date the developer certifies that the zone enterprise has commenced commercial operation and for a period of ten years to a developer of zone starting from the date of signing of the development agreement in the special economic zone as announced by the Federal Government] 2[:Provided that this clause shall also apply to a co-developer as defined in Special Economic Zone Rules, 2013 subject to the condition that a certificate has been furnished— (a) by the developer that he has not claimed exemption under this clause and has relinquished his claim in favour of the co-developer; and (b) by the Special Economic Zone Authority validating that the developer has not claimed exemption under this clause and has relinquished claim in favour of the co-developer.]

Sources: SEZ Act 2012
Income Tax Act Ordinance 2001(126E)

Duty-free import of machinery, equipment and materials under EPZ Scheme

Explanation of Incentives

Duty free import of machinery, equipment and materials imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom. The purpose is to enhance Pakistan’s export.

Actual Legal Text of Incentive in the relevant Law/Rules/SRO

Machinery, equipment and materials imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom, and goods imported for warehousing purpose in Export Processing Zone, subject to the conditions that such machinery, equipment, materials and goods are imported by investors of Export Processing Zones, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (IV of 1969) and rules made thereunder shall mutatis mutandis, apply

Sources: Customs Act, 1969 (IV of 1969)
Sales Tax Act 1990 (102)