Tribal districts may get another year of tax exemption
ISLAMABAD: The federal government is considering further extending the tax exemption period in the erstwhile tribal areas of Khyber Pakhtunkhwa even though IMF has asked it to scrap the exemption.
Last month, Finance Minister Aurangzeb Khan had ruled out any further tax exemption for ex-FATA and PATA, including Malakand Division.
He had told the National Assembly that under the 25th constitutional amendment, former FATA and PATA had come under the ambit of the taxation law. These areas had been given an exemption in payment of income tax and sales tax till 2023. Then, the exemption was extended for one more year which was to expire on June 30 this year.
However, according to media reports, the government is considering maintaining the tax exemption on some products and purchase of machinery for establishment of industries in the areas for another year.
Officials in the FBR said that they were working on a proposal to extend the exemption period for another year keeping in view the backwardness of the area.