The federal government is planning to withdraw sales and income tax exemptions for FATA/PATA areas.
Sources told ProPakistani that the Federal Board of Revenue (FBR) has prepared tax proposals for the next fiscal year budget, and there are chances that the Chairman Federal Board of Revenue will brief the finance minister on these proposals during this week.
Sources said that FBR has proposed to withdraw exemptions for FATA/PATA.
The revenue authority is expecting to get up to Rs. 100 billion in taxes from this proposed measure.
It is pertinent to note that the government had extended the sales and income tax exemptions for another one year during the current year budget in June 2023.
Initially, the government, before the current year’s budget, had proposed to withdraw exemptions, but later on, it kept the exemptions until June 30, 2024.
Presently, the government is giving tax incentives worth Rs. 1,200 billion to different industries. Sources said that various industries, especially steel, have a numbe
r of times asked the federal government to provide a uniform rate of taxes for all businesses established in different parts of the country.
Reportedly, people doing business in FATA are misusing the exemptions by dealing in other parts of the country, which is hurting the economy.
Source: Pro Pakistani