ISLAMABAD: The Senate Standing Committee on Finance and Revenue, recommended complete implementation of tax exemption facility for Federally Administrated Tribal Areas (FATA), Provincially Administrated Tribal Areas (PATA) and Malakand Division. This facility has been guaranteed by the government in the FATA, PATA and Malakand region merger Bill / 25th Constitutional Amendment.
The Senate Finance and Revenue Committee met here with Farooq H Naek in the chair and expressed showed satisfaction over the explanation given by the Member Inland Revenue-Policy of Federal Board of Revenue Dr Muhammad Iqbal regarding taxing the pensioners. The committee had taken up the issue as public petition moved by Major (R) Ghulam Abbas.
The Committee questioned Dr. Muhammad Iqbal about the circumstances under which pensioners were taxed; he revealed that under FBR rules pensioners are not taxed unless they possess taxable movable or immovable property; or if they accept other employment after retirement. He further stated that the petitioner was not included in the tax list. Chairman Committee disposed off the petition; issuing directions for the petitioner to be informed of the decision.
While discussing modalities of the implementation of Tax Relief Regimes announced by the Government as promised during the passage of FATA, PATA and Malakand region merger Bill / 25th Constitutional Amendment, the members of the Committee asserted that in order to facilitate this war ravaged region it was imperative that the government kept its commitment of giving tax exemptions to commercial enterprises in FATA/PATA and Malakand Division for a minimum of five years. They stressed that all exemptions given in Article 247 of the Constitution be fully implemented.
While agreeing that the region would benefit from tax concessions, Senator Mohsin Aziz stressed the need for ensuring that this move promoted value addition and was labour intensive. He also stressed the need for concessional loans that would encourage the establishment of new enterprises. He also asserted the need to discourage the growth of conversion industries to benefit residents of the area.
Senator Fida Muhammad recommended that a nine-member committee be formed to take up the issue of tax exemptions with the Ministry of Law and Justice so that residents of FATA/PATA and Malak and Division benefit from it.
Chairman Committee, Senator Naek directed the committee to meet on 29th June, 2018 and instructed Dr. Iqbal, to coordinate with the Ministry of Law and Justice, ECC and Cabinet Division to provide complete details regarding the issue. He asserted that no notification be issued unless this problem is resolved.
