Chapter 3 (Privileges & Guarantees)
Branch Strategic projects
9. (1) Investment, in the following fields, shall be deemed strategic investment, namely:-
(a) relating to infrastructure, roads, ports, electricity, dams, communications, energy, transport, contracting business, education, health and tourist and information technology services and water projects;
(b) Relating to extraction of subterranean and deep seas wealth;
(c) Agricultural, animal and industrial production;
(d) Crossing more than one state;
(e) Any such other fields, as the Council of Ministers may prescribe.
(2) The regulations shall specify the strategic projects in the fields provided for in sub-section (1).
Exemption from taxes
10.(1) Subject, to the provisions of section 19, and without affecting any privileges, as may have been granted to any of the investment projects, in accordance with such conditions and safeguards, as may be in use :-
(a) the strategic project, specified in the regulations, shall after its registration, in accordance with the organizing laws, enjoy exemption from the business profits tax for a period of ten years, the effect of which shall commence, as of the date of commercial production, or practice of activity;
(b) The Minister may grant the non-strategic project exemption from the business profits tax, for a period, not exceeding five years, the effect of which shall commence, as of the date of commencement of commercial production, or practice of activity.
(2) Notwithstanding the provisions of sub-section (1)(a), the Council of Ministers, upon a recommendation, from the Minister, may extend the exemption of strategic and non-strategic projects, as to such conditions and safeguards, as the regulations may specify.
Exemption from customs duties
11.(1) Subject, to the provisions of section 19, each of such strategic and non-strategic projects, as may be specified in the regulations, after registration thereof, in accordance with the laws organizing the same, shall enjoy such customs privileges, as the Council of Ministers may prescribe.
(2) Notwithstanding the provisions of sub-section (1), customs privileges shall, with respect to cars, salon cars, box cars and station wagons, be granted as the regulations may specify.
(3) The Council of Ministers may, upon the recommendation of the Minister, amend the prescribed customs privileges, as he may deem fit.
Project granted the privileges of allocation of land and depreciation account
12. The Minister may grant such strategic and non-strategic projects, as may be specified in the regulations:-
(a) the land necessary for the strategic project free of charge, and at the encouragement price for the non-strategic project, in co-ordination with the bodies concerned, from such lands, as may have been planned by the competent bodies;
(b) The privilege of depreciation account of the assets, as to such renewal value, as may be specified by the regulations, and in accordance with the circuits of operation work;
(c) deeming any such loss, as may have occurred, during the period of exemption, provided for in sections 10, as if it is such loss, as may have occurred during the last year of such period.
Grant of privileges to State projects
13. The State Minister may grant such state project, as may be specified in the regulations, the following privileges :-
(a) total, or partial exemption, from such taxes and fees, as may be levied by a state, or local law, for a period not exceeding five years; provided that he may, upon the approval of the State Council of Ministers, extend such exemption for another similar period;
(b) any such other state taxes, or fees, as may subsequently be levied on the project;
(c) allocation of the land necessary for the state project, at the encouragement price , in co-ordination with the bodies concerned, from the lands allocated by the competent bodies.
State projects granted federal privileges
14.(1) The Minister, upon the recommendation of the State Minister, may grant a state project the privileges provided for in section 11.
(2) The State Minister, upon delegation by the Minister, may grant a state project the privileges, provided for in section 11, as to such conditions and safeguards, as the Minister may deem fit.
No taxes or fees levied on federal projects
15. No state, or locality shall levy any state, or local taxes, fees or rates, on any investment project federally licensed, during the period of the tax exemption, provided for in sections 10 and 11, save in consideration of such services, as may be of public nature, performed by the state, or the locality.
16.(1) The Minister, upon the approval of the Minister of Finance, and in consultation with the Competent Minister may grant preference privileges to such projects, as may satisfy any of the following features :-
(a) direct investment towards the least developed areas;
(b) assist in the development of export capabilities of the country;
(c) contribute to achievement of integrated rural development;
(d) create great chances of work;
(e) strive to encourage charitable trust;
(f) strive to develop scientific and technological research;
(g) re-invest the profits thereof.
(2) For the purposes of sub-section (1), privileges mean any of the privileges provided for in section 10, or 11, with respect to the size, extent, or term thereof, as the regulations may specify.
Guarantees Investment guarantees
17. (1) An Investor shall enjoy the following guarantees:-
(a) the non-nationalization, or non-confiscation of his project, non- acquisition of all, or part of the estates of the project thereof, or his investments, for public interest, save by law and in consideration of just compensation;
(b) the non-attachment, non-confiscation, non-custody or non-sequestration of the property of his project;
(c) the re-remission of the invested money, in case of the non-execution of the project, at the outset, liquidation, or disposal of the same, in any of the ways of disposal totally, or partially, in the currency, in which it has been imported; on condition of satisfying all the obligations legally due thereon, and in the case of non- execution of the project, at the outset, machinery, equipment, apparatuses, means of conveyance and other requisites, which have been imported for the project, may be re-exported, whenever all the obligations, mentioned in this paragraph have been satisfied;
(d) the remission of the profits and the cost of financing for the foreign capital, or loans, in the currency in which the capital or loan has been imported, at the date of accrual, after payment of the obligations legally due on the project;
(e) the import of such raw materials, as the project may need, and the export of the products thereof, after the automatic registering , of the investment project, onto the Exporters and Importers Register.
(2) For the purposes of paragraph (c) of sub-section (1), the invested capital shall be specified in foreign currency; and the elements of the capital in kind shall be evaluated by the customs authorities by the customs certificate of value (CCV) , or the import form (IM).
Privileges and guarantees of the project protected
18. Notwithstanding the provisions of any other law, no administrative body shall refrain from implementing the Privileges and guarantees, granted under the provisions of this Act.