Extent of exemptions

The exemptions from taxes and duties granted by section 3 of this Act shall apply only to such activities of the Producer as relate directly to the Mollejon Project, the Chalillo Project and the VACA Project, including any financing thereof. (Exemption from Taxes and Duties) 7 SCHEDULE MOLLEJON HYDROELECTRIC PROJECT EXTENT OF EXEMPTIONS FROM TAXES AND DUTIES [Section 3] 1.-(1) The Producer shall be exempt from all taxes measured by or imposed on receipts, revenues, income or profits and payroll and other employment taxes payable to the Government of Belize, its agencies, departments and political subdivisions, as well as all local, regional or municipal governments. (2) This exemption shall apply to all officers and employees of the Producer not citizens or permanent residents of Belize. In addition, the Producer shall be exempt from all income withholding and other taxes payable to the Government of Belize, its agencies, departments and political subdivisions, as well as all local, regional and municipal governments for, (a) all dividends, distributions, interest, and other payments paid by the Producer to its owners (“the Partners”); (b) all dividends, distributions, interest and other payments paid by any Partner to its shareholder(s), partner(s) or other owners; and (c) all interest and other payments, paid by the Producer or any Partner to any lender or foreign creditor with respect to any loan(s) or other indebtedness incurred in connection with the acquisition, construction and Mollejon Hydroelectric Project 8 mobilization of the Project or any portion thereof, including any further loan(s) incurred to refinance such loan(s). 2. The Producer shall be exempt from excise taxes, ad valorem taxes, taxes or fees on the conversion of currency, sales taxes and stamp duties, payable to the Government of Belize, its agencies, departments and political subdivisions. 3. The Producer shall be exempt from Import Duties, Import Taxes, and Import Assessments and Use Taxes, payable to the Government of Belize, its agencies, departments and political subdivisions, as to any property, equipment or assets, brought into or imported into Belize, and utilized in the Project or on behalf thereof.