China, Pakistan committed to success of CPEC dailytimes.com.pk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailytimes.com.pk Daily Mail and Mail on Sunday newspapers.
Govt forms body to finalise tax
Proposal seeks tax cut on EPC supply contract for Kohala, Azad Pattan projects
Both the companies had raised the issue that at the time of announcement of the Policy for Power Generation Projects 2002, there was no tax on payments made to an offshore supply contractor. PHOTO: FILE
ISLAMABAD:
The government has formed a committee to finalise a proposal for reducing tax on offshore engineering, procurement and construction (EPC) supply contracts relating to 1,124-megawatt Kohala and 700MW Azad Pattan Hydropower Projects.
At present, there is 2.1% withholding tax that has exposed companies to an additional tax and cost, according to a brief on the tax levy on offshore supply contracts prior to the Finance Act 2018 and changes in the tax regime enacted through the Finance Act 2018.