ISLAMABAD: Federal Board of Revenue (FBR) is preparing a comprehensive mechanism to halt shifting of industries from tariff areas to non-tariff areas of the country, it is learnt here.
Official sources told Customs Today that FBR has observed a huge revenue loss during last few years due to industry shift from tariff areas of the country to non-tariff areas like formally known FATA, Azad Jammu and Kashmir and Gilgit Baltistan to avoid taxes.
The board has already started dialogue with administrations and relevant authorities of these non-tariff areas to impose a tax on the industries which are shifting as entrance in the non-tariff area of the country. However, the board is preparing comprehensive mechanism to halt the shifting of these industries and impose tax for shifting the industry.
Sources told that mostly steel industries are moving towards non-tariff area like FATA, while some other industries are shifting towards AJK and Gilgit Baltistan which is causing huge revenue loss to national exchequer.
Sources also told that due to this move of industries to non-tariff areas the government compelled to provide Rs8 billions of tax exemptions, facilities or cut to tariff areas in order to discourage the shifting of these industries. However, the main step from the government is to prepare comprehensive mechanism regarding shifting of these industries.
