MUZAFFARABAD (Kashmir English): The alleged irregularities worth billions of rupees in hydropower projects during the tenure of former Azad Jammu and Kashmir (AJK) prime minister Raja Farooq Haider have come to light.
As per the report, the tax concessions to hydropower projects during Farooq Haider’s government have caused a loss of Rs4 billion to the public exchequer.
According to the details, the tax rate on construction services was reduced from 16–17 per cent to one per cent.
Questions have also been raised over the absence of the required legal procedure, including approval by the Legislative Assembly, for such a change in the tax rate.
In addition, two notifications issued by the Finance Department regarding tax concessions for hydropower projects during Haider’s tenure have also come to light, prompting questions about who gave the approval and their impact on government revenue.
As per the information, a notification issued on January 30, 2018, fixed the tax rate on construction services for hydropower projects at one per cent, while disallowing input tax adjustment and refunds.
Another notification, dated March 3, 2021, related to the 147-megawatt Patrind Hydropower Project, reduced the tax rate on construction services provided by Daewoo for Star Hydropower Limited from five per cent to one per cent. The concession was made effective from July 1, 2015.
