Monday, 30 October 2023 07:05

Strategic Project Act to be suspended under tax incentive reforms Featured

The government has taken a firm policy decision to suspend the Strategic Development Projects (SDP) Act until the structures and processes are in place, and on the long term replace it with a new law, the Finance Ministry‘s fiscal policy department sources said.

These structures and processes will evaluate the effectiveness of the offered incentives including tax holidays or tax exemptions for investors, they divulged.

Efforts are underway to suspend the Act initially in the midterm and later abolish it by enacting a new Priority Investment Project Act with necessary investment friendly provisions.

This fiscal policy decision has been taken in accordance with the International Monetary Fund’s (IMF) recent directive.

The existing SDP Act has given generous tax holidays for non-export-oriented projects and non-priority mixed development projects with no contribution towards economic growth connecting the country into global supply chains.

 

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