PTI government has circulated two ordinances to establish CPEC Authority and grant tax relief to Gwadar Port. By granting tax concessions and setting up the China-Pakistan Economic Corridor Authority, a strong message is sent to China that Pakistan is serious in implementing the multibillion-dollar project.
On the eve of Prime Minister Imran Khan’s visit to China, these ordinances were promulgated.
“The CPEC Authority Ordinance 2019” and “The Tax Laws (Amendment) Ordinance 2019” have been implemented to ensure that the CPEC projects are implemented properly and to provide exemptions in income tax, sales tax and customs duties to Gwadar Port and Gwadar Free Zone.
A joint forum of the civilian and military leadership, the National Development Council has given the approval to set up the CPEC Authority and give tax concessions to Gwadar port.
Back in 2016, the idea to establish CPEC Authority was floated, however, ex-PM Nawaz Sharif disapproved of it.
CPEC Authority will try to attract more Chinese financing in CPEC projects. One of the most important elements would be the establishment of a $9 billion Main Line-I project which has been delayed and has faced constraints.
Under the Planning, Development and Reform Division under the Rules of Business of 1973, the CPEC Authority will be placed.
According to Section 9(3) of the ordinance, “All investments made by the authority shall be [made] with the approval of the budget committee.”