Erstwhile tribal areas: Tax, duty exemptions not to be extended beyond June 30

ISLAMABAD: The government has decided not to further extend the exemption from duties and taxes for the erstwhile tribal areas beyond June 30, 2024, in the coming budget (2024-25) to generate additional revenue of Rs 45 billion.

It is learnt that the government had granted a one-year extension in exemption from duties and taxes for the erstwhile tribal areas up to June 30, 2024, under the Finance Act, 2023.

This exemption was valid up to June 30, 2024, but there is no intention to further extend this exemption in the coming budget. The revenue impact of the said measure is nearly Rs 45 billion.

Erstwhile tribal areas: Tax, duty exemption extended by one year

Sources said that the Federal Board of Revenue (FBR) has drafted a tax proposal in this regard. Sources said that the FBR has proposed to withdraw exemptions for erstwhile tribal areas.

The tax exemptions have been granted to the industrial units of iron/ steel, plastics, ghee, textile and other sectors/industries located in the erstwhile Federally Administered Tribal Areas/ Provincially Administered Tribal Areas.

It is pertinent to note that the government had extended the sales and income tax exemptions for another one year during the current year budget in June 2023.

Initially, the government, before the current year’s budget, had proposed to withdraw exemptions, but later on, it kept the exemptions until June 30, 2024.

Copyright Business Recorder, 2024