January 12, 2003	Sunday	Ziqa'ad 8, 1423

ISLAMABAD, Jan 11: The Central Board of Revenue has notified that income tax exemption will be available to all those oil fired powers plants established before October 22, 2002.

CBR official spokesman Vakil Ahmad Khan in a statement issued here on Saturday said oil fired power plants that were exempted from income tax prior to power generation policy 2002 would continue to avail this facility as per earlier commitments.

The policy decision taken on October 22, 2002 was therefore, prospective in nature and would be applicable to the oil fired power plants set up on or after October 22, 2002, he said.

According to the spokesman, to make the position absolutely clear and give effect to the intent of the policy decision necessary amendments had also been made in Income Tax Ordinance 2001, through fresh SRO, so as to remove any tinge of confusion or ambiguity in the minds of existing oil fired power plants owners.

The government has withdrawn the income tax exemption from oil fired power plants through a notification issued on December 19, 2002.

The spokesman said queries had been raised by the owners of power plants as to whether the notification was also applicable to the oil fired plants set up prior to October 22, 2002 and time-bound exemption available by virtue of mutual agreements between the government and IPPs was also effected by this notification.

It has also been stated that the intention of power generation policy 2002 could not possibly withdraw exemption from the existing power plants of this category.

According to the spokesman, the government was committed to honouring the agreements entered into for setting up power projects. Concessions and facilities provided earlier were not withdrawn, he added.