RECORDER REPORT

ISLAMABAD: Federal Board of Revenue Chairman Mohammad Jehanzeb Khan Tuesday informed the Senate Standing Committee on Finance that the government is planning to restore all tax exemptions available to people of tribal areas in the next cabinet meeting.

During the meeting of Senate Standing Committee on Finance held to review the Finance Supplementary (Amendment) Bill, 2018, the chairman FBR disclosed before the committee that the original status related to exemptions, especially related to income tax and sales tax, will be restored in letter and spirit.

Jehanzeb Khan said that the government decided to present a summary before the federal cabinet for restoration of income tax and sales tax exemption available to FATA and PATA before their merger with Khyber Pakhtunkhwa (KP). The FBR chairman said, “We will submit a summary to the cabinet in this regard”.

On the other hand, Senator Khanzada Khan reminded the chairman FBR that tribal people will not accept any change in the status of taxes in the tribal areas. However, the chairman assured the senators that as per law, the status will be restored at the level of pre-merger.

Senator Atiq Sheikh raised the issue and said that on import, the duty should be waived off but the FBR team was of the view that the exemptions available to Fata and Pata would be made available after the implementation of merger for next five years. The senators were of the view that the peculiar situation in the tribal areas warranted for providing tax relief for next five years.

Chairman Senate Standing Committee on Finance Farooq H Naek said that they could not support any illegal demand as customs duty and federal excise duty were already applicable in the areas so the committee could not recommend waiving off such taxes. However, the FBR team assured that the summary moved to the cabinet would restore tax exemptions which were available before the merger of Fata and Pata.