Zero taxes for some industries proposed: CED on cement may go
By Ihtashamul Haque
ISLAMABAD, April 26: The central excise duty on cement and turnover tax on few other industries are likely to be removed in the budget for 2003-04 in order to attract investment.
“We have proposed zero rated taxes for some industries, including cement, with a view to promoting investment,” said Privatization and Investment Minister Dr Abdul Hafeez Shaikh.
Talking to Dawn, he said his ministry had proposed some modification in the tax policy to facilitate new investment, and in this behalf the cement industry was likely to be exempted from excise duty in the budget.
“We need to offer better incentives to some specific industries in order to lure investment in all the four provinces,” he said and added although the current investment policy was liberal, it further needed to be made more attractive, both for the local and foreign investors.
He pointed out the Task Force on Investment has proposed a number of incentives to attract investment. The Ministry of Finance, he said, had been recommended certain changes in the tax policy with a view to helping investors.
Dr Hafeez said the task force had also proposed amendments in the sanctioning procedure for establishing new industries in the country. “One of the main recommendations is that a number of inspections of industries by the tax departments should be curtailed so that the investors could do their business without any fear or apprehension,” he added.
Similarly, he said new recommendations concerning property rights and functioning of court system had also been made to be incorporated in the new budget.
The Board of Investment, the minister said, had presented new ideas to the relevant ministries to promote investment.
Responding to a question, he said the government was finalizing dates to hold country specific investment conferences in China, Turkey and Saudi Arabia to invite foreign investment.
Likewise, Dr Hafeez said provincial conferences would be held within this year at Lahore, Karachi, Peshawar and Quetta. These conferences, he pointed out, would be the follow-up of a two-day international conference held last week in Islamabad.
Talking about the privatization, he said vigorous process had started to disinvest the state sector entities.
Dr Shaikh said the Privatization Commission had received eight expressions of interest (EoIs) for disinvesting Faisalabad Electricity Area Board. “This is a very exciting development,” he said, adding that after Faisalabad, other area electricity boards will also be privatized as quick as possible.
To a question, he said he did not want to give dates for the privatization of various public sector units unless certain preparations had been made. “But I assure you that our privatization programme will be more transparent and timely,” the minister added.
