ISLAMABAD: Ministry of Planning and Development has approached the Federal Board of Revenue (FBR) to reduce withholding tax on offshore procurement contracts to facilitate investments under the China-Pakistan Economic Corridor (CPEC) projects.
Sources told Business Recorder here on Wednesday that the Ministry has asked the tax authorities to reduce the rate of withholding tax from existing 2.1 percent to 1 percent as final and fixed tax after due approval process. Ministry has further asked the FBR that the tax authorities have agreed to provide this concession in April 2020 during the meeting held at the CPEC Authority Office, but the issue is still pending with the concerned authorities.
Ministry of Planning added that this being the first ever foreign direct investment in Azad Jammu and Kashmir (AJK) under the CPEC, it is necessary to address the issue for timely completion of the project.
Copyright Business Recorder, 2020
