Federal Minister for Finance Senator Muhammad Aurangzeb disclosed to the National Assembly on Thursday that there are no plans for new legislation to extend tax and duty exemptions for the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) regions.
Aurangzeb clarified that these exemptions, which have been in effect for six years, are scheduled to expire on June 30 of the current year.
Responding to a calling attention notice regarding the proposal to withdraw tax and duty exemptions for these regions, Aurangzeb elucidated the rationale behind this decision. He emphasized that the business community has been advocating for a level playing field for all industries, leading to the reconsideration of the tax exemptions for FATA and PATA. According to Aurangzeb, the business community has consistently urged for the removal of provincial tax treatment and concessions, seeking equitable conditions for industries across the country.
The impending expiration of tax and duty exemptions for FATA and PATA marks a significant development in Pakistan’s economic landscape, with implications for businesses operating in these regions and policymakers tasked with ensuring equitable economic policies nationwide.
In addition to this announcement, various papers were laid before the house during the session. These included the Report of the 1st biannual Monitoring on the Implementation of the 7th NFC Award, the Mid-Year Budget Review Report for the Financial Year 2023-24, the Fiscal Policy Statement 2024, the Debt Policy Statement for January 2024, the Performance Monitoring Report for the current fiscal year, and Audit reports of the Auditor General of Pakistan relating to the Accounts of the Federation for the years 2021-22 and 2022-23.
These documents provide crucial insights into the government’s fiscal policies, budgetary performance, and financial management, serving as vital resources for lawmakers and stakeholders alike.
As discussions surrounding the expiration of tax exemptions for FATA and PATA continue, policymakers will be tasked with balancing the need for equitable economic conditions with the imperative of fostering development and growth in these historically marginalized regions. The decisions made in the coming weeks will undoubtedly shape the trajectory of economic policy in Pakistan for years to come.