Special Economic Zone
Fiscal Benefits at QAAP SEZ
As a fully-fledged Special Economic Zone, QAAP offers the following benefits to its partners
- QAAP is a designated duty free enclave and enjoys foreign territory status for trade operations, duties and tariffs.
- Exemption of duty for the import/procurement of goods for the development, operation and maintenance of SEZ units.
- Exemption of duty and taxes for the import/procurement of goods from the domestic tariff area.
- Unlimited sales to the Domestic Tariff Areas [DTA] are permitted provided duty is paid by the manufacturing unit.
- QAAP SEZ is designated as a duty-free enclave and treated as a foreign territory for trade operations, duties and tariffs.
- The units benefit from 100% full and free FDI repatriation of export proceeds, dividends, etc.
- Sales from a Domestic Tariff Area [DTA] to QAAP SEZ and units within the SEZ are considered exports.
- QAAP has been granted public utility status which means that wild-cat strikes are deemed illegal.
- Exemption from customs duty on import of capital goods, raw materials, consumables, office equipment and other such items that may be required for setting up, operations and maintenance of SEZ units.
- Availability of Government training subsidy.
Benefits to Developers
- One time exemption from all custom duties and taxes for all capital goods imported into Pakistan for development, operation and maintenance.
- Exemption from all taxes on income accruable in relation to the development and operation of SEZ for a period of 5 years.
Benefits to New Zone Enterprises
- One time Exemption from custom duties and taxes on import of capital goods into the SEZ for installation therein.
- Exemption from all taxes on income for a period of 10 year if started commercial operations by 30th June, 2020 and for a period of 5 years after the aforesaid date.