60-day extension sought for registration of non-custom vehicles in Fata/Pata

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ISLAMABAD –¬†The Senate Standing Committee on Finance and Revenue has recommended that registration of non custom-paid vehicles in Fata/Pata should be extended for a period of 2 months.

The committee, which met under the chair of Senator Farooq H Naek, has discussed tax exemption for commercial enterprises in Fata/Pata and Malakand Division.

The previous government has given exemption of income tax on profits and gains of existing businesses conducted by individuals for a period of five years in erstwhile Fata and Pata. These businesses however, need to be registered with FBR by 30th September 2018. It has also exempted the Fata and Pata from sales tax to the retailers to facilitate the general consumers.

Similarly, domestic consumers of electricity would be exempted from sales tax on domestic consumption of electricity. Federal Excise Act 2005 shall replace the erstwhile Central Excise Act 1944.

Non customs paid vehicles would be allowed to be used in erstwhile Fata/Pata for a period of five years ending on 30th June 2023.

However, these vehicles will not be allowed to cross over to other areas of the country. On the expiry of the five years’ relaxation period, the vehicles would be regularized on payment of leviable duty and taxes.

Discussing the issue of registration of non custom-paid vehicles in Fata/Pata and Malakand Division, Senator Mohsin Aziz stressed the need for ensuring that people in the region are made aware of this through an extensive advertising campaign.

He also stressed the need to extend the deadline for a minimum of 30 days.

Senator Naek recommended that the deadline for non custom-paid vehicles be extended for a period of 2 months.

He further stressed the need of an extensive publicity campaign so that residents of that region could be made aware of the process.

Discussing the issue of Federal Excise Duty (FED), previously Central Excise Duty (CED), being levied at the rate of 16 percent, members of the committee were livid at an increase of one per cent; since earlier it was 15percent.

Dr. Muhammad Iqbal, Member IR Policy FBR, clarified that concessions to the people of Fata/Pata and Malakand Division were still in place as the tax levied was 16 per cent as opposed to 21 per cent suggested by the Senate.

Senator Mohsin Aziz and Senator Anwarul Haq Kakar were in favour of concessions to industries and commercial enterprises in the area. However, it was suggested that incentives be rationalised by categorizing commercial and industrial enterprises.

Senator Aziz, asserted the need of negative/positive list to ensure maximum concessions. Senator Haq suggested that a sub-committee be formed to oversee these issues.

Dr Iqbal suggested that before giving verdict on the issue, a visit to the areas in question was important to get an idea of ground realities.

While further 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, a brief submitted by the FBR regarding the said exemptions, was reviewed.

Members of the committee once again reiterated the importance of facilitating this conflict ridden region by extending 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 i.e. prior to the 25th Amendment of the Constitution be implemented to the fullest.

Discussing the issue of registration of non custom-paid vehicles in Fata/Pata and Malakand Division, Senator Mohsin Aziz stressed the need for ensuring that people in the region are made aware of this through an extensive advertising campaign.

He also stressed the need to extend the deadline for a minimum of 30 days.

Senator Naek recommended that the deadline for non custom-paid vehicles be extended for a period of 2 months.

He further stressed the need of an extensive publicity campaign so that residents of that region could be made aware of the process.

Discussing the issue of Federal Excise Duty (FED), previously Central Excise Duty (CED), being levied at the rate of 16 percent, members of the committee were livid at an increase of one per cent; since earlier it was 15percent.

Dr. Muhammad Iqbal, Member IR Policy FBR, clarified that concessions to the people of Fata/Pata and Malakand Division were still in place as the tax levied was 16 per cent as opposed to 21 per cent suggested by the Senate.

Senator Mohsin Aziz and Senator Anwarul Haq Kakar were in favour of concessions to industries and commercial enterprises in the area. However, it was suggested that incentives be rationalised by categorizing commercial and industrial enterprises.

Senator Aziz, asserted the need of negative/positive list to ensure maximum concessions. Senator Haq suggested that a sub-committee be formed to oversee these issues.

Dr Iqbal suggested that before giving verdict on the issue, a visit to the areas in question was important to get an idea of ground realities.


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