Islamabad, December 21, 2024 – Following directives from Prime Minister Shehbaz Sharif, a high-level committee has been formed to devise a comprehensive taxation regime for the Newly Merged Districts (NMDs).
The Federal Board of Revenue (FBR) announced the committee’s establishment on Saturday through an official notification.
The committee includes a diverse group of representatives from government and industry to ensure a balanced and practical approach to transitioning the NMDs into the formal taxation system. The members of the committee are as follows:
1. Rana Sana Ullah Khan, Federal Minister for IPC and Adviser to the Prime Minister on Political and Public Affairs, as Convener.
2. Amir Muqam, Member of the National Assembly.
3. Minister of State for Finance and Revenue.
4. Chairman, Federal Board of Revenue.
5. Chief Secretary, Khyber Pakhtunkhwa.
6. Representative of Pakistan Association of Large Steel Production.
7. Representative of PVMA.
8. Zahidullah Shinwari, Former President of KPCCI.
The committee’s Terms of Reference (TORs) are designed to address critical issues related to the taxation framework in these areas:
1. Formulating strategies to implement the recommendations of the steering committee on the Prime Minister’s Program for NMDs.
2. Reviewing the current tax exemption regime, evaluating its revenue impact, and addressing misuse affecting industries in the region.
3. Proposing actionable steps to integrate NMDs into the taxation system after the exemptions expire on June 30, 2024, as outlined in the PM’s program for NMDs.
4. Engaging with stakeholders to raise awareness and facilitate industries in the NMDs for a smooth transition to the regular tax regime.
5. Addressing any ancillary issues related to the taxation process.
The committee has been directed to submit its findings and recommendations to the Prime Minister within four weeks. The FBR will provide secretarial support to the committee, with its Member (IR-Policy) acting as the committee’s secretary.
This initiative underscores the government’s commitment to fostering economic development and fiscal integration in the NMDs. By implementing a structured taxation framework, the government aims to promote industrial growth, curb misuse of exemptions, and ensure sustainable revenue generation in these regions.