Karachi, May 26: The Sindh government is considering exempting newly constructed industries from property tax for three years in order to boost the industrialization, and the decision in this regard is likely to be announced in the provincial budget. This was stated by MA Jalil, Adviser to the Chief Minister Sindh on Excise and Taxation, while addressing the members of SITE Association of Industries on May 24.

He said the government would provide facilities to investors and industrialists and sought their cooperation in boosting industrialization in the province. He said he had also proposed abolition of infrastructure cess on raw material used in the manufacturing of goods for exports in the manufacturing bond area. He said the decision regarding withdrawal of infrastructure cess would be announced in the next budget. He said this decision would be applicable in specified area (manufacturing bond) and on the import of raw material for producing exportable goods. The decision was aimed at giving incentives to exporters and industrial activities in industrial areas.

According to Site Association press release, he said it was for the first time that the Sindh government had announced Rs500 million grant for development work in the SITE area. The allocation would be spent on the construction and repair of roads, improvement of sewerage and other civic facilities.

He said a proposal to develop industrial zone on five thousand acres stretching from Ibrahim Haidri to Rehri was under consideration. As far as protection of investment and maintenance of law and order was concerned, the provincial government had already pledged its support.

He admitted the shortage of water in SITE area and advised SITE Association to renovate the wastewater treatment plant installed at Gutter Baghicha to make it useable for industrial purpose. From this Treatment Plant, 15 MGD water could be had.

He advised the association to ask the local government to expedite the treatment plant. He assured that he would also talk to the City Government in this regard.

Earlier, the chairman Site Association, Dr. Mirza Ikhtiar Baig said the biggest industrial area was suffering eight-hour continued load shedding and pressure of gas was too low to start generator. He said bills were not in accordance with actual btu value, etc. However, it is matter of great satisfaction that longstanding issue for installation of 132 kv high transmission line has been resolved out of the court.

He said that the City Government neglected the SITE area in Tameer-e-Karachi programme and the sanctioned funds of Rs29 billion were distributed among four industrial areas of Korangi, Landhi, F. B. Area and North Karachi.

While agitating about the collection of Property Tax by the Excise and Taxation Department, Government of Sindh/City Government, Dr Baig said that the Excise and Taxation Department had revised the tax w.e.f. July 1, 2001 up to 55 per cent and in some cases it has reached up to 200-300 per cent. He urged rationalizing of property tax and other local taxes in the next budget in order to provide relief to the industrialists of Sindh.

Mr Jalil promised to look into the matter and directed the officials concerned to make recovery with patient without resorting to any coercive method.