Tuesday, December 21, 2010

Hydro, wind and solar projects further taxed

Hydro, wind and solar projects further taxed 
MONITORING REPORT ISLAMABAD: The advance income tax and turnover tax would be applicable on manufacturing and imports of small hydro, wind and solar renewable resources.

“No tax exemption is available to manufacturing and imports of small hydro, wind and solar renewable resources under the provisions of the Income Tax Ordinance, 2001,” sources said while quoting a letter of FBR to Finance Division.

The sources said that no customs duty or sales tax for machinery equipment and spares meant for the initial installation or for balancing, modernization, maintenance, replacement, or expansion after commissioning of projects for power generation utilizing renewable energy resources subject to fulfillment of conditions under the relevant notification. The imposition of tax would increase the prices of imports of small hydro, wind and solar renewable resources which would create more concerns among the relevant sectors.

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