Prime Minister Shahid Khaqan Abbasi chaired a meeting of the Economic Coordination Committee of the Cabinet at Prime Minister’s Office today. In order to attract investment in the country, the ECC approved a landmark incentive package for setting up new state-of-the-art Deep Conversion Oil Refinery Projects, anywhere in the country, including expansion of existing refineries of minimum 100,000 barrels per day capacity. This would also be applicable to PARCO Coastal Refinery Project (PCR). The incentive package approved today includes 20 years income tax holiday, exemption from all duties, taxes, surcharges and levies on import , by the Refinery Project, its contactors or any other persons, of all machinery, vehicles, plant and equipment, other materials and spares and consumables for setting up, operation, maintenance and repair of Refinery. The Package also includes exemption from withholding tax and all other duties, taxes, surcharges, levies and import relating to foreign contractors/subcontractors and their personnel in connection with engineering, procurement, construction, commissioning, operation, maintenance and repair of the Refinery. Sales tax and excise duty on supply of locally manufactured building and construction of material, equipment and service for setting up of Refinery would also be exempted. New Refinery projects would be given a pricing mechanism which shall be no less favorable than the prevailing mechanism. The new projects would also be facilitated in project infrastructure such as Single Point Mooring (SPM), Jetties, subsea/land pipelines etc. The package also grants waiver to applicable Development Surcharge on the value of exports under the EPZA Rules 1981 in case Refinery Project is set up in Export Processing Zone. This decision will facilitate establishment of new state-of-the-art refineries any part of Pakistan that will ensure sustained supply of petroleum products in various parts of the country at affordable prices and reduce the import bill of petroleum products. ******
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