From The Express Tribune · ZAFAR BHUTTA · · 1m 10s
Pakistan's mineral incentive package for foreign investors
Pakistan plans tax breaks and 30-year GST exemptions for copper and gold projects.
In brief
Pakistan plans tax breaks and 30-year GST exemptions for copper and gold projects. Pakistan's government will offer foreign investors tax incentives including 30-year GST exemptions for copper and gold projects to boost $8 trillion mineral reserves. Originally reported by The Express Tribune.
Government plans mineral incentives
The government will offer tax breaks to foreign investors to tap copper and gold reserves worth $8 trillion.
Wood Mackenzie model details
Wood Mackenzie proposed reduced withholding tax rates: 4% for local goods and 8% for local services.
30-year GST exemption proposal
Mining projects may get 30-year exemption from general sales tax on imports and local purchases until commercial production starts.
Withholding tax deferral
Withholding tax for contractors and suppliers may be reduced during exploration and deferred until commercial production begins.
Capital goods import duty exemption
Import duties on mining equipment may be exempted during exploration, development and construction phases.
1% presumptive tax proposal
A 1% presumptive tax on export proceeds and 0.5% development surcharge may replace corporate income tax.
Fiscal stability clauses
Mining projects may get 30-year super tax exemption and 15-year dividend tax exemption.
What matters most
Pakistan's government will offer foreign investors tax incentives including 30-year GST exemptions for copper and gold projects to boost $8 trillion mineral reserves.
