PAKLINKS BANNER EXCHANGE
The first ever mineral policy was announced in September 1995 by the Government of Pakistan with a view to facilitate private sector investment in the mineral development. All minerals except oil, gas and nuclear mineral are under the domain of provincial government which are responsible for development and exploration of minerals in their respective areas. A brief outlook of the mineral policy is as follows:
The Federal Government will set up a political consultative forum by the name of Mineral Investment Facilitation Board to review the implementation of the mineral policy and to remove bottlenecks. The Provincial Authorities will deal in mineral development activities including the licensing in their respective areas. The Federal Government would provide requisite support and advice to the provinces to achieve sustainable benefits from the development of non-renewable mineral resources.
Incentives Import duties
Import of machinery and equipment would be eligible for exemption from certain levies and
Concession rates of import duties. Export of minerals will be exempt from the levy of Sales Tax.
Income tax
Dividend payable to corporate non residents will be subject to withholding tax at 7.5%. payment made to non-residential contractors will be subjected to withholding tax at percents.
Mineral titles
Minerals title of various types have been defined in the policy. Specifying the area and duration of each title.
Royalty
The policy provides for the royalty payable to the local government. The royalty is payable on ad valorem basis on gross values, at the rates prescribed for various kinds of minerals.