Karachi, March 02, 2021: All Iron Steel Merchants Association has asked The Federal Board of Revenue (FBR) to restore all tax exemptions available to the people of Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (Pata).
According to Budget proposal submitted by All Iron Steel Merchants Association, the exemption from sales tax will remain till June 30, 2023.
The incentives had been given for bringing tribal areas to the mainstream and triggering the development process and rehabilitating the underdeveloped area.
However, some businessmen in the Iron and Steel sector have extremely manipulated this blanket exemption of sales tax.
These importers produce and sell goods in the developed parts and show production and consumption in tribal areas aimed at evading taxes. This abuse of exemptions has gained them a window of unnatural profits which should be going to the national exchequer.
We propose that all the duties and taxes should be charged at the import stage and once the goods meant for FATA/PATA are manufactured only then shall they be refunded.
Implicating this practice will not only discourage illegal imports and misuse but also help the honest manufacturers in the area.
The importers using this concession should be made liable to show proof of industrial cycle so the targeted development of the area can be achieved and the local population can take the gains from increased employment opportunities in FATA/PATA area.
