ISLAMABAD: Finance Act 2023 has withdrawn one-year extension in exemption from duties and taxes for the erstwhile tribal areas up to June 30, 2024.

The exemption has been withdrawn through an amendment in the Finance Bill 2023 made through the amended Finance Bill 2023. This exemption was valid upto June 30, 2023. The extension proposed has been removed under the Finance Act 2023. Now there is no such exemption for the erstwhile tribal areas up to June 30, 2024.

Tax experts told Business Recorder that the exemption of nearly Rs 45 billion has been withdrawn for another fiscal year.

During the period of concession from 2018 to 2023, the facility given to these units crippled the taxpaying units operating in the tax areas of the country. The extension in the exemption period is disastrous for the bonafide taxpaying industries operating in the country.

Under the Finance Bill 2023, an extension in exemption of sales tax to NMDs (FATA/ PATA) has been granted for another one year ending on June 30, 2024.

Moreover, another extension in exemption on machinery and equipment imported by erstwhile FATA areas has been allowed till June 30, 2024. At the same time, the extension of income tax exemption has been granted for one year, i.e., up to June 30, 2024 for resident persons of FATA/ PATA.

After issuance of the final Finance Act 2023, the one-year extension in tax exemptions would not be available to the industrial units of iron/ steel, plastics, ghee, textile and other sectors/ industries located in the erstwhile Federally Administered Tribal Areas/ Provincially Administered Tribal Areas.

Copyright Business Recorder, 2023