ISLAMABAD, Pakistan: The federal government on Wednesday decided not to collect sales tax on electricity & manufacturing and income tax on profits in business from the FATA and PATA areas as part of implementation of tribal areas’ merger with Khyber Pakhtunkhwa.
The decision was taken in a Caretaker Federal Cabinet meeting held at Prime Minister’s Office in Islamabad, the Minister for Information and Broadcasting Syed Ali Zafari told while briefing the media about decisions taken in the Cabinet’s meeting.
The Federal Cabinet – in its meeting with Caretaker Prime Minister Justice (retd) Nasir-ul-Mulk – approved issuance of a notification regarding exemption of federal taxes in the areas of erstwhile FATA/PATA initially for a period of three months.
Syed Ali Zafar – who heads the Implementation Committee on FATA’s merger – said there would be no customs duty on non-duty paid vehicles for five years after their registration.
The minister said the Governor Khyber Pakhtunkhwa Iqbal Zafar Jhagra would promulgate an ordinance within two days to settle legal matters regarding FATA’s merger with Khyber Pakhtunkhwa.
