Tax relief for goods imported for Hubco power project
Federal Board of Revenue (FBR) has exempted from payment of withholding tax goods imported by contractors engaged in the execution of power project by the HUB Power Company Limited.
The exemption was granted through SRO 129(1)2009 issued under sub-section (2) of section 53 of the Incoem Tax Ordinance 2001 (XLIX of 2001). Previously, goods or class of goods imported by contractors or sub-contractors engaged in the execution of power project under the agreement between the government of Pakistan with HUB Power Company Limited, were exempt from the provisions of section 148 on import of such goods etc under sub-clause (i) of clause (56) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001. However, the clause (56) of Part IV of the Second Schedule was substituted vide the Finance Act, 2008, and in the substituted clause, the exemption available from WHT u/s 148 to the company was discontinued. The exemption granted to the company would continue until completion of the project as per international commitments and the agreement signed with the government.