KARACHI: Following the International Monetary Fund’s (IMF) directives, the federal government has proposed to end tax exemptions in budget 2024-25, ARY News reported on Tuesday.
According to the details, the federal government proposed to cease the existing tax exemptions for the former Federally Administered Tribal Areas (FATA)/Provincially Administered Tribal Areas (PATA) region in the next financial budget.
The move to abolish tax exemption in the FATA/PATA region is expected to generate Rs100 billion in annual revenue for the national exchequer.
Sources close to the development claimed that the Federal Bureau of Revenue (FBR) has already prepared a preliminary proposal for the budget for the next financial year, adding that the FBR chairman also briefed the finance minister regarding it.
Currently, the federal government is providing tax concessions worth Rs 1,200 billion to various sectors, however, the IMF has directed Pakistan to phase out these tax exemptions in the next budget.
Last week, Pakistan’s president, Asif Ali Zardari, approved the Tax Laws (Amendment) Bill 2024 under Article 75 of the constitution.
The bill proposed to amend taxes and duties-related laws, a President House News release said.
The amendments made through the bill include changes to sections 30DDD, 43, 45B, 46, and 47 of the Sales Tax Act 1990.
Similarly, through the amendment bill, changes to sections 29, 33, 34, and 38 of the Federal Excise Act 2005, and sections 122A, 124, 126A, 130, 131, 132, 133, and 134A of the Income Tax Ordinance 2001 have also been made.
