LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) has expressed deep concern over misuse of tax exemptions by the industries in FATA/PATA and urged the government to take immediate notice of the issue.
While talking to the heads and representatives of different trade and industrial associations, Acting President of the Lahore Chamber of Commerce & Industry Mian Rehman Aziz Chan said that the misuse of tax exemptions by the industries based in erstwhile FATA/PATA is hampering the competitiveness of industries based in Punjab.
He said that the Federal Board of Revenue has granted Sales Tax and Income Tax exemption to industries based in erstwhile FATA/PATA in 2018 on imports of certain raw materials for their consumption under SROs 889(I)/2018, 890(I)/2018 and 1213(I)/2018. In a recent development, the exemption of FED has also been granted to the industries based in erstwhile FATA/PATA w.e.f 1st July 2021.
Mian Rehman Aziz Chan said that these raw materials are imported and sold in Punjab which results in heavy Tax Evasion. This misuse is seriously hurting the regular industries based outside FATA/PATA especially the Foam Industry and Steel Melters etc.
He said that apart from FATA/PATA, other parts of the industry are paying around Rs100 billions taxes. He said that because of tax exemptions given to the industries in FATA/PATA has resulted in 30% reduction in the production of the industries in other parts of the country.
The LCCI Acting President said that the tax exemptions to the FATA/PATA industries should be withdrawn immediately. He mentioned that the amount of tax exemptions is around Rs30 billion. The government should withdraw the exemptions and spend this amount for the promotion of Information Technology and Education sectors in FATA/PATA to produce skilled human resources.
On the occasion, the representatives of Pakistan Steel Melters Association, Pakistan Steel Re-rolling Mills Association, Pakistan Steel Long Pipe Manufacturers Association, All Pakistan Foam Manufacturers Association and Pakistan Vanaspati Manufacturers Association also demanded withdrawal of tax exemptions in FATA and PATA.
Copyright Business Recorder, 2022