The Economic Coordination Committee (ECC) of the Cabinet has granted withholding tax exemption to Chinese Contractor CR-Norinco JV and allowed duty and taxes free import of equipment/apparatus for the Lahore Orange Line Metro Train Project.
During the meeting of the ECC, chaired by Finance Minister Ishaq Dar, a proposal was put up by Ministry of Planning, Development and Reforms with request of the government of Punjab to grant exemption in withholding tax as well as tax and duties on import of equipment for Orange Line project. Sources said that Punjab government has estimated that roughly Rs20 billion taxes and duties on import of Lahore Orange Lime Mass project would cost.
The ECC has granted exemptions from withholding tax beyond 6% of E&M contract price to the said Chinese contractor.
The ECC approved the proposal and also decided that a similar dispensation would also be extended to the other rail-based mass transit projects in Karachi, Peshawar and Quetta at appropriate time.
The ECC was informed that Lahore Orange Line Metro Train Project has been made a part of the China-Pakistan Economic Corridor (CPEC) along with rail-based mass transit projects in other provincial capitals at the recently concluded 6th Joint Cooperation Committee (JCC) meeting held in Beijing, China.