Tax Exemption in Merged Districts of Former FATA/PATA: An Urgent Appeal
I will present the issue of tax exemption in the merged districts of former FATA/PATA to the Prime Minister, says Mubarak Zeb.
It’s impossible to establish industries with the proposed tax in terrorism-affected areas; zero-tax policy must continue, states Atif Ikram
ISLAMABAD ( WEB NEWS )
Presidents of all FATA/PATA Chambers of Commerce and Industry met with the President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Atif Ikram Sheikh, accompanied by Minister of State for Tribal Areas, Mubarak Zeb. The business community of FATA/PATA rejected the 10% sales tax, demanding its immediate withdrawal until 2028. They urged the government to honor its promise of a ten-year tax exemption for the districts merged into Khyber Pakhtunkhwa.
Minister of State for Tribal Areas, Mubarak Zeb, stated on the occasion that he would present the issue of immediate freight reduction in former FATA/PATA and the currently merged areas to Prime Minister of Pakistan, Mian Muhammad Shehbaz Sharif. He expressed his full commitment to resolving the issue effectively. He highlighted that a ten-year tax exemption was promised when FATA/PATA districts were merged into Khyber Pakhtunkhwa in 2018. However, after five years, only a one-year extension was granted, failing to fulfill the ten-year promise. He emphasized that these annual extensions are a significant hurdle to investment in FATA/PATA. He also suggested that members of the National Assembly from Khyber Pakhtunkhwa should be included in the committee for merged districts, chaired by Rana Sanaullah, to ensure a smooth resolution.
President FPCCI, Atif Ikram Sheikh, stressed the need for an immediate reduction in freight charges in former FATA/PATA and the currently merged areas. He stated that these areas, having been severely affected by wars, cannot support industries with the proposed taxes. He urged all stakeholders to consult and maintain a zero-tax policy. He affirmed that the Federation would fully represent these areas and play a role in resolving their issues. He warned that the imposition of these taxes would lead to increased unemployment and could create law and order problems in FATA/PATA.
The presidents of the FATA/PATA Chambers stated that in addition to being affected by terrorism, floods, and earthquakes, FATA/PATA is far from the sea, incurring transportation charges of twenty-five rupees per kilogram. This makes it impossible to compete with industrial zones in Lahore and Karachi. They pointed out that international law provides special tax concessions to areas far from sea ports and urged the government to maintain tax exemptions as a relief measure for the merged districts.
The meeting was attended by Vice President Aoun Syed, Advisor to President FPCCI Syed Jawad Kazmi, President Bajaur Chamber Lali Shah, President Malakand Chamber Inamullah, Secretary Khyber Chamber Ali Faisal, Former President Swat Chamber Yusuf Ali, President Mohmand Chamber Engineer Arsalan, Former President Khawaja Abdul Quddus, President Kurram Chamber Imad Kazmi, President Tribal Union of Journalists Qazi Fazalullah, Vice President FPCCI Tariq Jadon, Chairman Coordination Sohail Malik, and other chamber officials.