Govt offers tax incentives to new industrialists

ISLAMABAD: The Nawaz Sharif government will provide attractive incentives to industrialists establishing new industries and creating employment opportunities.

The government has given tax relief on a large scale through the Finance Tax Bill 2016, the 2001 Ordinance, for establishing industries. In this regard, instead of one, two percent tax relief will be given to those who create 50 new employment opportunities through Section 64-B, while 40 percent exemption in tax will be given to an industrialist who creates a thousand new employment opportunities.

This exemption will be applied from June 30, 2016 to June 30, 2019.Moreover, 10 percent tax exemption will be given to those who make investments in the industry for Balancing Modernisation and Replacement (BMR) under the new Finance Act. For example, Rs1 million tax exemption will be given to those who bring Rs10 million machinery under the BMR.

Those who establish a new factory with 70 percent equity will be given 70 percent tax relief till 2019. Earlier, this scheme was offered till June 30, 2016 and now it has been extended till June 30, 2019.

Another 20 percent relief in tax is offered for two years to the company which will be listed in the Stock Exchange. Such steps will open new avenues for establishing new industries in the country.