Karachi: Pakistan's Economic Coordination Committee (ECC) has granted chosen Gwadar port operator PSA a large number of tax exemptions to develop and operate the new container terminal. Amongst other incentives, the Singapore based company would be exempt from paying duty on import of material and equipment for construction and operation of Gwadar Power and Development Free Economic Zone for 40 years. It would also be exempt from corporate income tax and all local and provincial taxes for 20 years. In exchange for these incentives, PSA is contracted to allow Pakistani authorities to set port fees at Gwadar. The government is expected to set very low fees initially in a bid to attract initial liner traffic to the new terminal and establish Pakistan as an international shipping hub. [02/02/07]
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