The PHC's are those arms of the government which can play a pivotal role in bringing rapid economic stability and energy security in the country thru fast tracked exploration & production of Oil & Gas reserves; thus the provincial governments have very rightly pleaded the federal government to strengthen all the PHC's, according to a press statement issued here on Wednesday.
While the provincial governments are gathering every available penny to strengthen the PHC's to bring economic prosperity in the country thru energy security; the federal government should exempt the PHC's of all four provinces from Income Tax for a period of ten years.
The exemption in-fact shall be viewed as prudent investment of the government which would result in much Greater Tax Revenue to the government after 10 years, thus a Win-Win proposition. There are many examples of exemptions given to promote specific sectors including the private sector.
Similar exemptions have been granted to a number of other sectors/companies including Private Sector such as: Clause 101 - 24 year tax exemption to venture capital companies
Clause 126A to 126AD - 23 year tax exemption to a number of Chinese companies and even to their contractors & sub-contractors working at Gwadar Port Clause 126B - 20 years tax exemption to Khalifa Coastal refinery Clause 126C - 10 years tax exemption to all industrial undertakings in Larkano industrial estate.
Clause 126D - 10 years tax holiday to all industrial undertakings in Gwadar Clause 126E - 10 years tax exemption to all industrial undertakings in special economic zones
Clause 132 - lifetime exemption to power sector companies Clause 132B - lifetime exemption to coal mining project in Sindh supply coal to power project Clause 141 - Five years exemption to LNG terminal operators and terminal owners.
Last year April 2017, the KP provincial assembly declared denial of due right of the provinces as sheer violation and disregard to the Constitution. For Finance Bill 2017 last years Joint Resolution was passed to urge Oil and Gas Regulatory Authority to include the said duty in the petroleum price fixing formula requiring the federal government to immediately implement the clause of the Constitution while following all other legal formalities.
The provincial governments are have again asked the Finance Ministry for imposition of the desired duty on indigenous Crude Oil in the Finance Bill 2018 which would increase the revenue receipts of the provinces which in turn could be used for further oil & gas exploration, economic development, job creation and boosting the nation economy as a whole. The budget speech on 27th April, 2018 would unveil if the federal government shows magnanimity on constitutional rights of the provinces.