Policy Parameters Manufacturing Sector Non -Manufacturing Sectors
Agriculture Infrastructure & Social Services including IT & Telecom Services
Govt. Permission Not required except 4 specified industries * Not required except specific licenses from concerned agencies.
Remittance of capital, profits, dividends, etc. Allowed Allowed
Upper Limit of foreign equity allowed 100% 100%** 100% 100%
Customs duty on import of PME 5% 0% 5% 0-5%
Tax relief (IDA, % of PME cost) 25% 25%
Royalty & Technical Fee No restriction for payment of royalty & technical fee. Allowed as per guidelines – Initial lump-sum upto $100,000 – Max Rate 5% of net sales – Initial period 5 years

Specified Industries:

Arms and ammunitions
High Explosives.
Radioactive substances
Security Printing, Currency and Mint.
No new unit for the manufacturing of alcohol, except, industrial alcohol ** Only for CAF
(Corporate Agriculture Farming)

PME= Plant, Machinery and Equipment
IDA= Initial Depreciation Allowance

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