Peshawar: The Federal Board of Revenue (FBR) will now have jurisdiction over the country’s tribal districts, a news source reported. This decision comes despite the fact that the Federally Administered Tribal Areas (FATA) were previously given a five-year tax exemption. This provision came in the wake of the region’s merger with Khyber-Pakhtunkhwa (KPK).
With the extension of FBR’s influence, cigarette makers were the first to voluntarily present themselves for tax registration. They signed an agreement with the Peshawar Regional Tax Office (RTO) for coming under the tax net.
Leader of the cigarette makers’ delegation, Rahim Dad Khan, said that the industry had suffered badly from militancy and security issues. He added that cigarette makers continue to prioritise the national interest over their economic interests. He assured that the manufacturers operating in the merged tribal areas will submit tax returns just like their counterparts in the settled districts.
The Inland Revenue Chief Commissioner Qaiser Iqbal Khan lauded the delegation on its commitment. He said that it is now FBR’s responsibility to offer legal assistance and security to the industry based in Khyber tribal areas.
The Inland Revenue Deputy Commissioner (DC) Muhammad Tariq responded to queries about tax exemption. He clarified that this provision only applied to industries producing and selling within the tribal districts. The taxes would be levied if the goods produced moved outside of the zones exempted.
FBR aims to generate over PKR 10 million annually in federal excise duty head through the three cigarette industries operating in Khyber tribal districts. A 17% ‘consequential taxes’ section of sales tax, and 31% income tax, will also be deposited in the public exchequer.
