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, JUN 26 (DNA): 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 chambers. officials.

I will raise the issue of tax evasion in the merged districts of erstwhile FATA and PATA before the Prime Minister: Mubarak Zeb

It is not possible to set up industry in terrorism-affected areas at the proposed tax rate, zero tax policy should be continued: Atif Ikram

Islamabad ()

The presidents of the All FATA and PATA Chambers of Commerce and Industry met with the Minister of State for Tribal Areas Mubarak Zeb and the President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram Sheikh. The business community of FATA and PATA rejected the 10 percent sales tax and demanded its immediate withdrawal by 2028. The government should fulfill its promise of tax exemption for ten years with the districts merged into Khyber Pakhtunkhwa.

Minister of State for Tribal Areas Mubarak Zeb said on this occasion that he will place the issue of immediate reduction in freight in the erstwhile FATA and recently merged areas before Prime Minister of Pakistan Mian Muhammad Shahbaz Sharif and God willing, he will make every effort to resolve this issue amicably. When the government was merging the districts of FATA and PATA into Khyber Pakhtunkhwa in 2018, a ten-year exemption was promised, but then after five years, by giving a one-year extension, that ten-year tax exemption promise was not fulfilled and each one-year extension is a major obstacle to investment in FATA and PATA. Members of the National Assembly from Khyber Pakhtunkhwa should be included in the committee formed under the chairmanship of Rana Sanaullah for the merged districts so that the matter is resolved amicably.

President FPCCI Atif Ikram Sheikh, while emphasizing the immediate reduction in freight in the former FATA PATA and the recently merged areas, said that wars took place in these areas, they are severely affected, all stakeholders should continue the zero tax policy in consultation. It is not possible to impose any industry on the proposed tax in the affected areas. The federation will fully represent all these areas and play a role in solving the problems. The implementation of these taxes will increase unemployment in FATA PATA and may also create problems of public order.

The presidents of the FATA PATA Chambers said on this occasion that FATA PATA is affected by terrorism, floods, earthquakes and is far from the sea and the transportation charges per kilo are Rs. 25, due to which it cannot compete with the industrial zones of Lahore and Karachi, while according to international law, areas far from seaports are given special tax concessions and the government should maintain tax exemption by dealing with the merged districts in a relief manner.

The meeting was attended by Vice President Aun Syed, Advisor to President FPCI Syed Jawad Kazmi, President Bajaur Chamber Lali Shah, President Malakand Chamber Inamullah, Secretary Khyber Chamber Ali Faisal, Former President Swat Chamber Yousaf Ali, President Mohmand Chamber Engineer Arsalan, Former President Khawaja Abdul Quddus, President Karam Chamber Imad Kazmi, President Tribal Union of Journalists Qazi Fazlullah, Vice President FPCCI Tariq Jadoon, Chairman Coordination Sohail Malik and other chamber officials.