MEXA had submitted several proposals in its Budget Memorandum to the Ministry of Finance and same have been accepted.
- Investment in Equipment and Machinery:
- Setting up of a Rs 5 billion Modernisation and Transformation Fund with leasing facilities at a preferential rate of 2.5%.
- Reduction on the annual interest rate (reduction of around 1%) for the existing Leasing Equipment Modernisation Scheme (LEMS)
- Carry forward of unrelieved Investment Tax Credit for manufacturing companies extended to 10 years.
- Financials: Increase in the refund ceiling under the Export Credit Insurance Scheme, from 02.% to 0.5%.
- Logistics Costs:
- Extension of the Sea Freight Rebate Scheme up to June 2022.
- The 50% reduction in port dues and terminal handling charges for export extended for 2 more years.
- Exports to Africa: Double Tax deduction on expenditure incurred for research and development targeting African market.
- Introduction of the Export Development Certificate providing a legal framework for Export Oriented Enterprises.
Note: In its budget Memorandum, MEXA also proposed to extend the 60% rate of refund under the Trade Promotion and Marketing Scheme for another year, 1st July 2021 to 30th June 2022. We are currently awaiting confirmation from the Ministry of Finance regarding same. We will keep you updated accordingly.