The federal government has decided to gradually abolish the sales tax exemption in the former FATA and PATA regions, rejecting lawmakers’ proposal to exclude these areas from the recently imposed 10 percent sales tax.
According to sources, a political party’s delegation met with the government’s economic team, including the Chairman of the Federal Board of Revenue (FBR) and the Member Policy, who briefed them on the decision.
Insiders reveal that lawmakers remain divided over the issue. In the Senate, one lawmaker recommended imposing higher taxes on the regions. However, a member of the National Assembly opposed the move and wants the tax exemption to continue.
The government maintains its stance to phase out the tax exemption in a gradual manner.