SECTOR AND SCHEME INCENTIVE

With its unique geo-strategic location, skilled human resources and untapped growth potential, Pakistan provides attractive incentives and liberal policies for investment in all sectors of the economy for foreign and local investors. These incentives are available in special schemes and in traditional as well as non-traditional sectors of the economy which offer great opportunities to the business community to invest in the country and to have maximum dividends on their investments..

 

These incentives have been categorized into special schemes and economic sectors. The information about the incentives is given at three levels:

 

            a)         Simple description of the incentives

            b)        Explanation of incentives

            c)         Legal text of incentives provided in the relevant law/rules

 

DISCLAIMER

Despite every effort to make incentive database free of any error or omission, these are only for referencing and guidance purposes and cannot replace the original laws, notifications, rules, and tariff published in the Gazette of Pakistan. Any suggestions and recommendations to make this database further useful will be highly appreciated.

  • Tax Credit Regime for export of IT & ITes Businesses.
  • Income from export of IT & ITeS is eligible for 100% tax credit subject to the condition that 80% of export proceeds are brought into Pakistan through normal banking channels.

  • Tax Credit Regime and Specific provision for Startups.
  • A PSEB registered startup business, which intends to offer technology driven products or services, and has turnover of less than one hundred million in each of the last five tax years, is eligible for a Tax Credit regime. There is no tax deduction from payments being made to startup for supply of goods, services, or contacts; provided exemption certificate under section 153 is submitted.

  • One percent tax on the proceeds of exports in case tax credit is not available.
  • An entity engaged in export of IT & IT enabled services and meets all the conditions prescribed under section 65F but does not bring 80% export proceeds into Pakistan, then income tax deductible under section 154A would be final tax of 1% in respect of income of such person from IT & IT enabled Services.

  • Sales Tax exemption on export of IT Services in Islamabad Capital Territory.
  • Persons engaged in export of IT & ITeS in Islamabad are now subject to "zero rate" of sales tax under Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

  • Up to 100% foreign ownership of IT & ITeS companies.
  • As per Pakistan’s Investment Policy 2013, all sectors and activities are open for foreign investment unless specifically prohibited or restricted for reasons of national security and public safety.

  • Provision of IT enabled office space in Software Technology Parks (STPs).
  • To help the IT industry in immediate set up of business premises, thirteen (13) STPs have been established by Pakistan Software Export Board (PSEB) to provide IT enabled office space with wide range of facilities.

  • Up to 100% repatriation of profits for foreign IT & ITes investors.
  • As per Pakistan’s Investment Policy 2013, foreign investors can repatriate profits, dividends, or any other funds in the currency of the country from which the investment was originated.

  • 35% of export earnings can be retained in foreign currency for making payments abroad.
  • Exporters of software are allowed to retain up to 35% of their export earnings in Special Exporters Foreign Currency accounts, which can be used for operational expenses and overseas payments.

  • No sales tax on export of Services by Call Centers in Sindh.
  • Export by Call Centers is exempted in Sindh province of Pakistan from sales tax on services.

  • Low sales tax rate on IT based services in Punjab.
  • Sales Tax applicable on information technology-based services is low, while the sales tax rate in Punjab province for services provided by Call Centers has been reduced to 16%.

  • Reduced rate of sales tax on IT based services in KPK.
  • IT based services in KPK are liable to 2.5% sales tax, while professionals in IT based consultancy are liable to 5% sales tax rate.

  • Low rate of sales tax on Information Technology based services in Balochistan.
  • In Balochistan province, sales tax rate on IT & IT enabled services under tariff heading 9868.000 is 6 %.

  • Duty-free import of machinery, equipment, and materials.
  • The investors are allowed duty- and tax-free import of all goods for setting up and operations of their units including machinery, equipment, and materials. Moreover, similar facility of getting duty and tax-free goods from tariff areas of Pakistan is also available.

  • Duty-free vehicles allowed under certain conditions.
  • Businesses in the zone are allowed to import vehicles without payment of duties & taxes in accordance with the entitlement.

  • Reduced rate of Income Tax @ 1%.
  • The normal Income Tax Regime is not applicable to zone businesses instead, presumptive Income Tax @1% is charged by EPZA, which is the final discharge of the liability.

  • Freedom from national import regulations.
  • Imports by businesses in the zone do not face general restrictions which are applicable to tariff areas of Pakistan under the Import Policy Order, except for specified conditions.

  • Exchange control regulations of Pakistan not applicable.
  • The businesses established in zones have been exempted from regulations relating to Foreign Exchange, which allows businesses to undertake foreign currency transactions with ease and flexibility.

  • Domestic market available to the extent of 20% or higher in specified cases.
  • Goods produced in the Zone can be sold into domestic market of Pakistan to the extent of 20% of their production or higher in specified cases.

  • Obsolete/old machines can be sold in domestic market of Pakistan.
  • The Export Processing Zone Authority permits sale of obsolete/old machines in domestic market of Pakistan after payment of applicable duties & taxes.

  • EPZ units allowed to supply goods to Custom manufacturing bonds in Tariff area.
  • To create additional commercial opportunities for the Investors in Zones, the facility of sub-contracting by units based in tariff area to the units in the Export Processing Zone, is allowed.

  • ‘B’ Grade goods/used materials can be sold in domestic market.
  • Manufactured goods of lower quality as well different types of used materials etc. can be sold in tariff area of Pakistan on payment of duty/taxes.

  • Developed land on competitive rates for 30 years.
  • EPZA offers developed land on competitive rates for 30 years to zone enterprises.

  • One-time Custom Duty exemption on import of Capital Goods (Zone Developers/Co-Developers).
  • The zone developer / Co-developers are allowed one-time exemption from all custom-duties and taxes on capital goods imported into Pakistan except the items listed under Chapter 87 of the Pakistan Customs Tariff, for the setting up of an SEZ subject to verification by the BOI.

  • Income Tax exemption for 10 years from the date of signing of Development Agreement (Zone Developers/Co-Developers).
  • The zone developer/ Co-developer is allowed exemption from all taxes on income, including from minimum turnover tax, accruable in relation to the development and operation of the SEZ for a period of ten years, starting from the date of signing of the development agreement.

  • One-time Custom Duty exemption on import of Capital Goods (Zone Enterprises).
  • The zone enterprise is allowed one-time exemption from all custom-duties and taxes on capital goods imported into Pakistan except the items listed under Chapter 87 of the Pakistan Customs Tariff, for the setting up of an SEZ subject to verification by the BOI.

  • Income Tax exemption for 10 years from the date of commencement of commercial operation (Zone Enterprises).
  • The zone enterprise is allowed exemption from all taxes on income, including minimum turnover tax accruable in relation to its commercial production/operation for a period of 10 years, starting from the date of commencement of its commercial operation.

  • 100 % ownership for foreign investors in specific sectors.
  • 100% ownership is allowed to foreign investors in the Gwadar Free Trade Zones as is allowed throughout Pakistan as per the Investment Policy of Pakistan 2013, except for investment in certain sectors including airline, banking, agriculture and media.

  • Tax holiday for 23 years for businesses related to the Gwadar Free Trade Zone.
  • A 23-year income tax holiday is available to the operators, contractors, sub-contractors, lenders, and the investors in the free zone area.

  • Exemptions of sales tax on certain goods for Zone/Port businesses etc.
  • No Sales Tax applicable on supplies of materials and equipment, plant and machinery, for zone and on vehicles for specified companies related to the zone.

  • 100 % exemption on customs duties for construction and operation.
  • 100% Custom duty exemption on certain imports for construction, development, and operations of Gwadar Free Zone, subject to certain conditions.

  • Availability of land/plots with lease period of 99 years.
  • The investors in Gwadar Free Trade Zone are provided plots in the zone on leases for a period of 99 years from the FZ Effective Date.

  • Exemptions of sales tax on certain goods for Zone/Port businesses etc.
  • No Sales Tax applicable on supplies of materials and equipment, plant and machinery, for zone and on vehicles for specified companies related to the zone.

  • Low rate of customs duties on import of capital goods used in Livestock Sector.
  • Plant, machinery and other capital goods used for establishing livestock farms can be imported on concessional rates of customs duty.

  • Low custom duties on capital goods used for handling, processing and storage of Vegetables, Fruits, Food items etc.
  • Machinery and equipment used for cleaning, sorting or grading items related to food can be imported on concessional rate of Custom duty.

  • Low rate of customs duties on import of seafood processing machinery and equipment.
  • Concessional rates of customs duty is available on import of Fish or Shrimp farming and Seafood processing machinery and equipment.

  • Low rates of customs duty on import of capital goods used by Food Processing Industry.
  • Machinery, equipment and other capital goods for miscellaneous Agro-Based Industries like milk processing, fruit, vegetable or flowers grading, picking or processing etc. can be imported on low-rate custom duty.

  • 0% customs duty on capital goods for setting up Fruit Processing in specific areas.
  • Custom free import is allowed on plant, machinery and equipment imported for setting up fruit processing and preservation units in Gilgit-Baltistan, Balochistan and Malakand Division, which are fruit growing areas of the country.

  • Concessional rate of customs duties on import of ingredients for preparation of Value Added Chicken Products (VACP).
  • Apart from availability of locally produce inputs, the import of inputs for manufacturing value added chicken products is also allowed on concessional rates of customs duty.

  • Sales tax exemption for import/supplies of livestock, meat etc.
  • There is no sales tax on import or supply of Live animals, meat of bovine animals, Fish, eggs, edible vegetables for cold storage and cereals etc.

  • Zero percent customs duty on import of Sugar.
  • Custom free import is allowed on Cane Sugar, Beet Sugar and crystalline forms of these.

  • Specific items related to food are exempt from withholding tax
  • There is exemption from deduction of income tax at source from services rendered, of specified food items (fresh milk, fish from fish farming, live chicken from poultry farming, live cattle from cattle farming and unpackaged meat).

  • Duty Free Import of machinery & equipment.
  • Textile Sector is allowed to import machinery & equipment without paying duties if it is not manufactured locally.

  • Exemption of Sales tax on Import of machinery & equipment.
  • Textile Sector is allowed to import machinery & equipment for greenfield without paying Sales tax, under certain conditions.

  • Long Term Financing Facility (LTFF) at Concessional Rates.
  • Under LTFF, Participating Financial Institutions (PFIs) provide long term local currency finance on concessional rate of 5% for textile sector as compared to normal KIBOR (which is higher) for purchase of plant and machinery to be used by the export oriented projects meeting specified criteria.

  • Export Finance (EFS) available at concessional rate of 3.0%.
  • Low markup rate of 3.0 % per annum is available for exporters availing financing facilities under Export Finance Scheme (EFS).

  • Permission to import restricted items by manufacturers.
  • Export houses operating under various schemes for manufacturing of goods for export are allowed to import restricted items which are required for production of finished goods.

  • Fully automated system for Repayment of customs–duties to exporters.
  • The repayment of customs duty to exporters is being made through a computerized system, directly into the company’s bank account.

  • Zero Custom Duty for textile products for export to China.
  • Under Free Trade Agreement with Pakistan, China has eliminated Custom Tariff on 313 High Priority Tariff lines of different good including Textile Products of Pakistan for export to China.

  • Low tariff/exemptions on exports to countries of EU due to GSP+ status.
  • Pakistan has been granted GSP+ status by European Union since 2014 due to which the manufacturing units of Pakistan are granted easy access to export their products to European Union. This is done through tariff concessions for their goods when entering the EU market. Due to this arrangement, the industrial units of Pakistan gain a competitive advantage for the European market.
    Sources:
    https://ec.europa.eu/trade/policy/countries-and-regions/development/generalised-scheme-of-preferences/

  • Export facilitation Scheme 2021.
  • No duty and taxes shall be levied on Input goods- including raw materials, spare parts, components, equipment, plant and machinery, by the authorized users, and local supplies of inputs to the authorized users shall be zero rated

  • Reduced Customs duty on import of CKD kits of small cars up to 850cc.
  • Customs Duty on import of non-localized CKD kits of vehicles up to 850cc reduced from 30 percent to 15 percent for new make or new model as certified by the EDB for two years from the date of issuance of manufacturing certificate or up to 30th June 2024, whichever is earlier.

  • Exemption from Value Added Tax (VAT) on small cars.
  • Exemption has been granted from Value Added Tax (VAT) on small cars up to 850cc.

  • No Advance tax on import of Motor vehicles up to 1000 cc.
  • The import of motor vehicles up to 1000 cc in CBU condition, is exempt from collection of withholding tax.

  • Low Customs Duty on Import of Hybrid Vehicles Parts.
  • Import of Parts for Hybrid Vehicles are allowed at low custom duties of 4 %, and on 3 % for parts for Plug in Hybrid Vehicles under Auto Industry Development Exports Policy (AIDEP)

  • Low Customs Duty for Vehicle Assembly (New Make or Model).
  • Additional Customs duty has been reduced for New make or models of vehicles as certified by Engineering Development Board.

  • Low custom duties on Automotive Parts of Vehicles.
  • Supportive custom duty structure for Raw Materials, Subcomponents/components, and Sub-Assemblies of Agricultural Tractors, Prime Movers, Buses, LCVs, HCVs other Vehicles, Cars, 4-Stroke Auto Rickshaw, 3- Wheeler Cargo loader and Motorcycle Rickshaw and Motorcycles.

  • Low Custom Duties on Vehicle Assembly (TBS Regime).
  • Supportive Customs duties regime is available for imported components in any kit form of vehicles including Agriculture tractors, Prime movers & Buses, Buses (dedicated LNG/ LPG or CNG), Trucks / HCVs .

  • Construction Sector Granted Status of Industry.
  • The Income Tax Ordinance has been amended to declare construction sector as an industrial undertaking, making it eligible for benefits and concession available to other industries.

  • New Fixed Tax Regime from Tax Year 2020 and Onwards for Eligible Builders and Developers.
  • An optional ‘Fixed tax regime’ from tax year 2020 and onwards for eligible builders and developers has been introduced on the income, derived from the sale of buildings or sale of plots, from a new or an incomplete existing project. Prior to this, tax was levied on a net income basis. Rate and computation of liability is determined under rule 10 of the eleventh schedule

  • Exemption of Withholding Tax on Purchase of Building Materials.
  • Eligible Developers and Builders shall be exempted from withholding taxes on purchase of building materials
    Dividend income paid to a person by a builder or developer company out of the profits and gains derived from a project shall be exempt from tax and also from tax withholding obligations.

  • Reduced Advance Tax on Auction Sale.
  • Reduced rate of advance tax of 5% has been introduced for sale of immovable property through auction.

  • Reduction in Tax Liability for Low-Cost Housing.
  • Any tax payable on the income, profits and gains of projects of low-cost housing under NAYA Pakistan Housing & Development Authority or EHSAAS programme shall be reduced by 90%.

  • Banks to increase credit for financing the housing & construction sector.
  • With a view to promote housing and construction of buildings (Residential and Non-Residential) in Pakistan, State Bank of Pakistan (SBP) has decided to advise mandatory targets to the banks. Accordingly, each bank shall ensure that the financing for housing and construction of buildings (Residential and Non-Residential) shall be at least 5% of their domestic private sector credit by December, 2021.

  • Custom Duty Exemption on import of Aircraft & related items.
  • i. Custom Duty is exempted on import of Aircraft acquired lease, engine, simulators, spare parts, maintenance kits, equipment required for setting up Maintenance, Repair & Overall (MRO) workshop, Machinery, equipment, furniture & fixture imported for establishment of new airport.
    ii. Customs Duty is exempted on import of Ground Handling equipment and on goods for repair and maintenance of aircraft not registered in Pakistan under distress.

  • No Sales Tax on supply/import of goods for setting up workshops and Greenfield airports.
  • i. Sales tax is exempted on supply of goods for Machinery, equipment, and tools for setting up MRO workshop; and machinery, equipment, and furniture/fixtures on one-time basis for setting up Greenfield airports by a company authorized by Aviation Division.
    ii. Repair goods imported for aircraft under distress that are not registered in Pakistan are exempt from sales tax.

  • Exemption from Advance Tax on import of Aircraft & related items.
  • There is no advance tax on import of Aircraft, maintenance kits, spare parts, machinery for MRO, machinery & equipment for setting up greenfield airports and aviation simulators.

  • No Custom duties on import of Ships, other floating and specialized crafts.
  • i. Custom Duty Exemption on import of floating crafts including tugs, survey vessels and other specialized crafts.
    ii. Customs Duty Exemption on import of cargo containers, Ship stores and equipment

  • Zero percent Sales Tax on supply, repair, spare parts for ships.
  • Zero percent sales tax applicable on supply, repair/maintenance, spare parts, and handling equipment’s for ships which are not ships of gross tonnage of less than 15 LDT or recreation use ships.

  • Sales tax exemption on import of container for cargo transportation.
  • Import of containers for transportation of cargo, ship spares and equipment are exempt from sales tax.

  • Exemption of Advance Tax upto 2030 on import of Ships and other floating crafts.
  • Advance tax exempted on import of ships, floating crafts/vessels upto year 2030, except ships purchased for demolition purposes.

  • Tax credit available for ship building business.
  • A tax credit of 25% of the amount invested is available to a green field industrial undertaking engaged in ship building.

  • Presumptive Taxing for ships/vessels flying Pakistani flag.
  • Presumptive Taxing on Shipping businesses owned by resident Pakistanis, vessels not registered in Pakistan, and SECP incorporated companies in Pakistan upto 2030.

  • Shipping industry allowed to avail Long Term Finance Facility.
  • The state bank of Pakistan offers long term finance facility (LTFF) for ships and vessels, allowing investors to procure floating vessels using this scheme.

  • Customs duty exemption on Imports for warehousing & transshipment businesses at Gwadar Free Zone Area.
  • Imports for businesses to be established in Gwadar Free Zone Area, in warehousing including cool and cold rooms, and transhipment, are exempt from Customs Duty for a period of 23 years with effect from 1st July, 2016.

  • Low Tax rate on Income from Freight related Services.
  • Income Tax rate of 3% is applicable on the gross amount payable, in the cases of transport services, freight forwarding services, air cargo services, courier services.

  • Reduced duty on pre-fabricated structures for hotels and on machinery and equipment .
  • The duty is reduced on import of machinery, equipment and other project related items for setting up of hotels located in an area of 30 km around the zero point in Gwadar and pre-fabricated structures for hotels in Hill Stations, Gilgit Baltistan, AJK, and Coastal Areas of Baluchistan (excluding Hub)

  • Sales tax exemption for import of capital goods for Hotels in Gwadar area.
  • Import of capital goods for setting up hotels in Gwadar is exempt from sales tax

  • Set off of losses of companies operating hotels.
  • If a company operating hotel sustains a loss in Pakistan for any tax year shall be entitled to have the amount of the loss set off against the company’s income in Pakistan.

  • Business Visa on Arrival.
  • The Government of Pakistan is granting a 30-day Single-Entry Business Visa On Arrival to the businessmen from 95 different countries

  • Refinance facility under the Export Finance Scheme for Consultancy Services.
  • Export status has been granted to the foreign earnings remitted into Pakistan against consultancy services in hotel and tourism/tourism related services. The foreign earnings against such consultancy services would be treated as export proceeds and consultancy services qualify for export finance facility.

  • Services provided by Hotel’s exempt from Income tax deduction.
  • Payment received by hotels for services is exempt from deduction of Income tax at source

  • No customs duty on import of plant and machinery for manufacture of EVs.
  • One-time Duty-free import of plant and machinery allowed for the manufacture/assembly of Electric Vehicles, subject to Engineering Development board certification.

  • No Sales Tax on imports of CKD kits of EVs.
  • There is Exemption of sales tax available on imports of CKD kits for Electric Vehicles of 2-3-wheeler, 4 wheeler and HCV form.

  • Low rate of Customs Duty on import of EV CKD & Specific Parts.
  • To facilitate local manufacturing Electric Vehicles specific parts in CKD form can be imported at low rate of customs duties of about 1%, while components parts in CKD form which are non-localized, can be imported at 10-15%.

  • Concessionary rate of Customs duty on import of Completely Built EV Units (CBU’s).
  • 4-Wheeler, 2-3 Wheelers and Heavy Commercial Vehicles in CBU form imports are allowed to be imported at low rates of Custom duties for a specified period of time. The rates are 1% for Heavy Commercial Vehicles, 50% of prevalent rates for 2-3 wheelers, and 10% for 4 wheelers till 30th June 2022 and 25% onwards uptill 30th June 2026.

  • Low Customs duty on import of Electric Vehicle Chargers.
  • Duty of 1 % Customs Duty is levied on import of Chargers with CKD kits for Electric Vehicles.

  • VAT Exemption on CBU/CKD import of certain type of Electric Vehicles.
  • Exemption of Value Addition Tax has been granted on EV 4 wheelers up to 50 kwh battery(CKD), 150 kwh battery LCV (CBU) till 30th June 2026, while 2-3 wheelers and HCV(CBU) till 30th June 2025.

  • Exemptions of Custom duty on Inputs for manufacturing EVs.
  • Inputs for EV vendors are exempted from custom duty (applies to inhouse manufacturing by OEMs also).

  • Exemption of Income tax for Zone Developers.
  • Exemption is available from taxes on income accruable in relation to the development and operations of the zones for a period of ten years, starting from the date of signing of the development agreement.

  • Exemption of Income Tax for Zone Enterprises.
  • Exemption is available from income taxes for a period of ten years from the date of issuance of license by the Authority to the Zone Enterprise.

  • Customs duties exemption on import of Capital goods for Zone Developers.
  • Custom duties are exempt for a period of ten years from the date of signing of development agreement, on capital goods imported into Pakistan for consumption within zones by Zone developers.

  • Customs duties exemption on import of Capital goods for Zone Enterprises.
  • Custom duties are exempt for a period of ten years from the date of issuance of license by the Authority, on capital goods imported into Pakistan for consumption within zones by Zone Enterprises.

  • Sales Tax exemption on import of goods, plant & machinery, and equipment within zones.
  • Exemption is available from Sales Tax on goods and services, on import of plant & machinery, equipment, and raw materials for the consumption of these items within zones by zone developers, and zone enterprises.

  • Exemption from tax on Dividend income and Capital gains for venture funds investing in Special Technology Zones.
  • Dividend income and long-term capital gains of a venture capital undertaking from investments in zone enterprises, are exempt from Income tax for 10 years commencing from issuance of license by the authority to the zone enterprise.

  • Property Tax exemption for Zone Enterprises.
  • As per Special Technology Zones Authority Ordinance 2020, exemption from property tax for a period of ten years for Zone Enterprises in Special Technology Zones is available, from the date of issuance of license by the Authority.

  • Pharma raw materials exempt from sales tax.
  • The sales tax on the import of raw materials for manufacture of Active Ingredients and pharmaceutical products are exempt from sales tax.

  • API’s exempted from Customs Duty.
  • Zero percent Customs duty is available on import of multiple Active Pharmaceutical Ingredients for the Pharmaceutical Sector.

  • Low Customs duty on import of Plant and Machinery.
  • 5% custom duty is applicable on import of Plant and Machinery for use of Pharmaceutical Manufacturers.

  • Low customs duty on import of Excipients/Chemicals.
  • The Customs duty on the import of specified Excipients/Chemicals for pharmaceutical sector is 5 %.

  • Refinance facility under the Export Finance Scheme for Consultancy Services.
  • Export status has been granted to the foreign earnings remitted into Pakistan against consultancy services in pharmaceutical. The foreign earnings against such consultancy services would be treated as export proceeds and consultancy services qualify for export finance facility.

  • Exemption of Customs duty on import of pharma grade Gelatin.
  • The pharma grade Gelatin used as an excipient in the production of hard capsules and softgels import is exempt from imposition of custom duty.

  • Custom duty exemption on Import of Capital goods for Mobile Manufacturing.
  • Plant, Machinery and Equipment used for the manufacturing of mobile phones can be imported at 0% customs duty. The local manufacturers have to be certified by Pakistan Telecommunication Authority.

  • Customs duty exemption on import of mobile phones in CKD/SKD form.
  • Exemption of Customs Duty is available for CKD/SKD manufacturing by PTA approved manufactures under Input/Output Co-Efficient Organization (IOCO) approved import authorization.

  • Locally assembled /manufactured phones are exempted from withholding tax on domestic sales.
  • Regarding Income tax, the withholding tax on domestic sales of locally manufactured mobiles phones is exempt.

  • Advance tax on specific mobile phones in CKD/SKD form is exempt.
  • Advance tax on import of mobile phones in completely knocked down/semi knocked down form is exempt up the category of 350 USD.

  • Low rate of Sales tax on CKD/SKD condition mobile phones.
  • The sales tax on import of CKD/SKD, and supply of locally manufactured mobile phones is low as compared to the sales tax on import of CBU’s.

  • R&D allowance of 3% to be given to local manufacturers for exports of mobile phones.
  • As per the Mobile Device Manufacturing Policy 2020, R&D allowance of 3% to be given to local manufacturers for exports of mobile phones.