Call for early resolution of tax matters facing CPEC
The Pak-China Relations Steering Committee asked the federal and provincial authorities to expedite the resolution of outstanding taxation and procedural matters of Chinese investors on priority to attract further investments in special economic zones (SEZs).
Simultaneously, the Nepra also advised power sector authorities to complete legal requirements and documentation for speedy decision making instead of looking for shortcuts to address outstanding issues of Chinese power companies.
The third meeting of the PCRSC presided over by Minister for Planning and Development Asad Umar also noted that minor problems which should be settled at the provincial level, ministries, board of directors of relevant entities and cabinet committees were unnecessarily being brought up before it. It desired that only progress reports on already settled issues and pending problems be presented to it for timely interventions.
The PCRSC - constituted a few months ago mostly comprised federal secretaries besides military and intelligence agencies. Right of way issue for Matiari-Lahore transmission line settled
The committee discussed various issues related to the China-Pakistan Economic Corridor (CPEC) projects in power, infrastructure and industrial cooperation sectors. It further directed that issues like withholding tax and investment facilitations should be taken to the relevant forums for decision making at the earliest.
Informed sources said that during the course of discussions on power projects like Matiari-Lahore Transmission Line, Zonergy's Solar project and a couple of others, a Nepra team led by its chairman Tauseef H Farooqi pointed out that being a quasijudiciary forum, it required complete documentation and the government decisions to come out with judgments and the relevant agencies particularly Private Power & Infrastructure Board (PPIB) should focus on deliverables on their part to qualify early decisions.
The regulator also pointed out that in one of the projects a sizable amount had been claimed on account of a sewerage recycling plant at a distance from the project that was not part of the original project and required due diligence under the laws and rules.