ISLAMABAD, Sept 6: The federal government on Friday announced three-year income tax exemption for the industrial units set up in Export Processing Zones (EPZs) up to June 30, 2000.

The exemption, which was initially allowed for 1998, was curtailed by the then government in 1996 to June 30, 1997, said an income tax notification issued on Friday amending the income tax ordinance 2001.

Member Direct Taxes, Vakil Ahmed Khan said that the decision was taken on the request of the investors of EPZs.

They had approached the government through the EPZ Authority and requested for allowing the exemption for the intervening period of three years as they were already paying tax regularly since July 1, 2000, he said.

According to Mr. Khan the matter was considered sympathetically by the government and consequently exempted tax for the period from July 1, 1997 to June 30, 2000, respectively, which was available before July 1996. This has resolved the long-standing issue of EPZs, he added.