ISLAMABAD, Sept 28: The Central Board of Revenue (CBR) has exempted dual fuel (oil/gas) power projects set up on or after September 1, 2005 from income tax on profit and gains.

The decision was notified through an income tax notification SRO1009 of 2005 issued here on Wednesday.

The exemption would be available to those projects which was owned and managed by a company formed for operating the said project and registered under the Companies Ordinance and having its registered office in Pakistan.

The project was not formed by the splitting up, or the reconstruction or constitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business, which was being carried on in Pakistan at any time before the commencement of the new business.

Moreover, the project owned by a company 50 per cent of whose shares are not held by the federal government or provincial government or a local authority or which is not controlled by the federal government or a provincial government or a local authority.

The notification reads as further amendment shall be made in the Second Schedule to the aforesaid Ordinance, namely:-

In the aforesaid Schedule, in Part-I, in clause (132), in the second proviso, after the figure 2002 the words brackets, comma and figure but shall apply to Dual Fuel (Oil/Gas) power projects set up on or after the first September, 2005 shall be added.