Senate body proposes tax exemptions for FATA/PATA

ISLAMABAD: A senate body on Friday proposed the government to restore the tax exemptions given to industries in federally- and provincially-administered tribal areas before their merger into Khyber Pakhtunkhwa.The Senate Standing Committee on Finance and Revenue unanimously recommended restoration of the tax exemptions, which were being availed by FATA, PATA and Malakanddivision prior to 25th constitutional amendment that led to merger of the areas into Khyber Pakhtunkhwa, for five years.The committee, however, recommended that the exemption should be given only to the industries which are operational.On provision of tax exemption to the new industries to be established during the next five years, the committee decided that it would visit the areas in the first week of August and hold meetings with all the stakeholders, including local chambers of commerce and industries to determine criteria in the regard.Senator Farooq Naik presided over the meeting that was attended by senators Mohsin Aziz, Dilawar Khan, Khanzada Khan, Anwarul Haq Kakar, Fida Muhammad, Mian Muhammad Ateeq Shaikh, and Muhammad Iqbal, spokesman of the Federal Board of Revenue (FBR).FBR spokesman Iqbal said a notification was issued in 2004 under which ghee millers were levied 15 percent central excise duty (CED), while after the merger the CED was replaced with the federal excise duty, which is 16 percent. An additional Re1 per kilogram would also be collected from the ghee millers from July 1.Senators Fida Muhammad, Khanzada Khan and Dilawar Khan said the exemption being given to the industrialists of the areas prior to the merger should continue for the next five years.They said since the areas remained war-torn for the decades they need some time to become part of the mainstream areas and the exemptions should continue.A Law Division’s representative said FATA, PATA, and Malakand division would have taxation laws from July 1 that are applicable nationwide.The official said legal issues would surface if the committee’s recommendation is approved.The new notification will take at least two months to be issued.Mohsin Aziz stressed the need for providing concessional loans and building an industrial estate in FATA to facilitate the local people in establishing their businesses.Mian Ateeq asked the chair to direct the FBR to extend the last date of the amnesty scheme for at least one month as most of the businessmen are not prepared to takebenefit from the scheme due to lack of understanding.

from The News International - Business https://ift.tt/2lI0bkP