Powerful lobbies and influential parliamentarians were shocked that the Finance Act 2023 has suddenly withdrawn a one-year extension (up to June 30, 2024) in exemption from duties and taxes for the erstwhile tribal areas.
The exemption has been withdrawn through an amendment in the Finance Bill 2023 made through the amended Finance Bill 2023. The powerful groups managed to get a one-year extension in exemption from duties and taxes for the erstwhile tribal areas up to June 30, 2024. However, an amendment in the Finance Bill 2023 has withdrawn the said exemption.
Now, the owners of industrial units of iron/ steel, plastics, ghee, textile and other sectors/ industries located in the erstwhile Federally Administered Tribal Areas/ Provincially Administered Tribal Areas cannot avail any exemption.
Under the Finance Bill 2023, an extension in exemption of sales tax to NMDs (FATA/ PATA) has been granted for another year ending on June 30, 2024.
Moreover, another extension in exemption on machinery and equipment imported by erstwhile FATA areas has been allowed till June 30, 2024. At the same time, the extension of income tax exemption has been granted for one year, i.e., up to June 30, 2024, for resident persons of FATA/ PATA.
Following the issuance of the Finance Act 2023, the one-year extension in tax exemptions would not be available to the industrial units of iron/ steel, plastics, ghee, textile, and other sectors/ industries located in the erstwhile Federally Administered Tribal Areas/ Provincially Administered Tribal Areas.
Source: Pro Pakistani