Sind Extends Sales Tax Exemption for Coal in Thar in Pakistan
The Sindh government has granted five years sales tax exemption on services to coal mining companies and coal based power generation companies located
The Sindh government has granted five years sales tax exemption on services to coal mining companies and coal based power generation companies located within the Thar coal field in Pakistan. The Sindh Revenue Board issued a notification dated December 30, 2020 to allow the exemption from sales tax on services to such companies until June 30, 2025. According to the SRB, the exemption would be available only during the construction phase of the project of coal-mining development and coal-based electricity generation of the companies located in the Thar coal field region.
The exemption was available earlier too, but had expired on June 30, 2020. Therefore, the Sindh government restored the exemption from the day following the expiry date.
The provincial revenue authority further said that the benefits of the incentive would not be available before the financial close of the project, and would also not be available after June 30, 2025 or after the construction phase of the project was completed or after the commencement of commercial mining / supply of the coal or the commercial generation of coal-based electricity.