PPPA seeks tax holiday for projects under 9 more categories

Jasim Uddin | Published: 00:00, Jul 16,2019

 
 

The Public Private Partnership Authority has requested the National Board of Revenue to give tax holiday to PPP projects under eight more categories, including utilities and logistics.

The new categories include urban development like planned housing, utilities like electricity transmission, water supply and drainage, multimodal transport hub, logistics like container and cargo depot, health sector, light rapid transit or light rail transit or metro rail, education infrastructure and manufacturing sector.

Earlier in June 2017, NBR offered tax holiday for 10 years to companies for implementation of infrastructure projects in 14 categories under PPP scheme.

The projects include national highways or expressways and related service roads, flyovers, elevated and at-grade expressways, river bridges, tunnels, river ports, sea ports, airports, subways, monorails, railways, bus terminals, bus depots and elderly care homes.

The revenue board also offered to the PPP projects a set of tax benefits including tax exemption for capital gain, royalty, technical know-how, technical assistance fee and foreign technician.

PPPA under the Prime Minister’s Office on Monday sought the tax holiday facility for the new sectors and some other tax benefits to other PPP projects at the first meeting of a committee headed by secretary to the PMO Sajjadul Hassan.

High officials of the NBR attended the meeting held at the PMO.

Earlier in March, PPPA executive board formed the committee to review the possible withdrawal of various types of taxes for PPP projects.

Officials who attended the meeting said that the PPPA sought the benefits arguing that the number of PPP projects was increasing after tax benefits had been offered to 14 sectors.

The proposed sectors should also be included in the list of tax holiday considering the importance of the projects, they said.

The meeting discussed in details about the possible impact and benefits of tax holiday for the sectors, particularly for the projects having commercial investment.

Officials said that the revenue board agreed to scrutinise the proposals.

They said that there was a decision of the executive board of PPPA to implement 30 per cent of the government’s annual development programme under PPP scheme.

PPPA also requested NBR for offering VAT and duty waiver on import of reexportable plants, machine, equipment and spare parts for PPP projects.

It also demanded withdrawal of stump duty on share and property transfer, and calculation of depreciation based on tenure of PPP projects instead of existing 2 per cent to 9 per cent depreciation.

At the meeting, PPPA also sought decision on demands of private sector partners of PPP projects seeking tax incentives for various projects such as construction of high-rise residential apartment building for low and middle income group of people at Jhilmil Residential Project and Payra Port Dredging.  

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