ISLAMABAD: The Khyber Pakhtunkhwa government has asked the federal government to grant income tax exemption for 10 years in the upcoming finance bill to the provincial holding oil and gas companies, also known as PHCs, which were incorporated pursuant to the Petroleum Policy 2012.

The PHCs are those arms of the government which can play a pivotal role in bringing rapid economic stability and energy security in the country through fast-tracked exploration and production of oil and gas reserves.

Similar exemptions have been granted to a number of other sectors/companies, including the private sector. Tax exemptions have been given to a number of Chinese companies, all industrial undertakings in Larkano Industrial Estate, in special economic zones, power sector companies etc.

In April 2017, the KP Assembly had declared that denial of due rights to the provinces was sheer violation of the constitution.

A joint resolution was also passed, seeking the exemption of tax in the Finance Bill 2017.

The provincial governments have again asked the finance ministry for imposition of the desired duty on indigenous crude oil in the Finance Bill 2018, which would increase the revenue receipts of the provinces, which in turn, could be used for further oil and gas exploration, economic development, job creation and boosting the nation economy as a whole.

Published in Dawn, April 26th, 2018