KARACHI: Pakistan’s government will not extend the preferential tax treatment for the erstwhile Federally Administered Tribal Areas (FATA) and the Provincially Administered Tribal Areas (PATA), Finance Minister Muhammad Aurangzeb said on Thursday, saying that business communities across the country were demanding equitable conditions for industries nationwide. 

Pakistan approved tax exemptions for erstwhile FATA, tribal areas in northwestern Pakistan which were merged with the Khyber Pakhtunkhwa (KP) province, in 2018. The exemptions were also extended to PATA, regions within KP which are administered by the provincial government due to their historical and cultural significance. 

The exemptions were extended till January 2023 but were granted another extension for one year. They are now set to expire on June 30, 2024. 

KP lawmakers this week demanded the government extend the incentives for the regions, saying that many princely states in northwestern Pakistan decided to join the country after independence when they were promised tax exemptions. 

“These exemptions are set to expire on June 30 this year by operation of law,” Aurangzeb said during a session of the National Assembly. He was responding to a call attention notice on the withdrawal of tax exemptions and concessions in former FATA and PATA areas. 

He clarified that the government is not “proposing any new legislation” to extend the tax exemptions. 

“The exemptions at that time were given for sales and income tax to integrate these areas into the mainstream economy,” the finance minister explained. He added that business communities, throughout their interactions with the government, were demanding equitable conditions for industries across the country. 

The exemptions were granted to industrial units of iron/steel, plastics, ghee, textile and other sectors and industries located in former FATA and PATA areas. 

Aurangzeb said business delegations from across Pakistan were seeking tax exemptions in line with those offered to ex-FATA and PATA. 

“Since the past few days various chambers have been coming in including steel, fabric, tinplate, oil, tea, and ghee,” Aurangzeb said. “They all are consistently asking about preferential tax treatment.”

Former National Assembly Speaker Asad Qaiser last week urged the federal government to extend the exemptions till 2028. He had argued that the withdrawal of tax exemptions would adversely impact industrial growth and employment in the areas. 

Some areas of northwestern Pakistan, including Malakand division, have been observing shutter-down strike for the past few days against the government’s decision to bring PATA under the tax net. 
 

ISLAMABAD: Pakistan’s religion minister arrived in Madinah on Thursday to inspect Hajj 2024 arrangements, praising Saudi Arabia’s king and Crown Prince Mohammed bin Salman for ensuring “excellent facilities” were provided to pilgrims ahead of the Islamic pilgrimage. 

Chaudhry Salik Hussain, Pakistan’s religious affairs minister, arrived in Jeddah on Wednesday to inspect Hajj 2024 arrangements for Pakistani pilgrims. The Hajj is an annual Islamic pilgrimage to the holy places of worship in Makkah and is obligatory on every Muslim adult who is physically and financially able to make the journey. 

Over 15,000 Pakistani pilgrims have arrived in the holy city of Madinah from various parts of the country in a month-long flight operation that kicked off on May 9. Pilgrims are expected to depart for Makkah on May 17 after completing an eight-day stay in Madinah. 

“We are thankful to the Custodian of the Two Holy Mosques Saudi Arabia’s King Salman and Crown Prince Mohammed bin Salman for providing excellent facilities to Hajj pilgrims,” Salik was quoted as saying by Pakistan’s religion ministry. 

Hussain visited the Pakistan Hajj Mission and reviewed arrangements at the complaint management cell there. 

“Timely redressal of complaints of Hajj pilgrims is proof of the system’s success,” Hussain said. 

The minister said he was satisfied that Pakistani pilgrims were provided accommodations near the Prophet’s Mosque in Madinah, describing it as a notable achievement of the Pakistan Hajj Mission. 

Pakistan has a Hajj quota of 179,210 pilgrims this year, of which 63,805 people will perform the pilgrimage under the government scheme, while the rest will use private tour operators.

Pakistan has set up two control rooms, one in Madinah and another at Makkah, to facilitate Hajj pilgrims. This year’s pilgrimage is expected to run from June 14-19.