Islamabad, May 26 — The federal government has resolved to slap an 18% sales tax on goods manufactured in the former tribal areas (ex-FATA/PATA) in the 2025-26 federal budget, a move poised to rake in over Rs45 billion in additional revenue for Fiscal Year 2025-26, according to a news report. This withdrawal of the sales tax exemption could yield even more if income tax concessions are also scrapped, intensifying the financial burden on the region.
The Federal Board of Revenue (FBR) is racing to amend legal frameworks in line with court orders and relevant laws. The Finance Act of 2024 had extended exemptions on imports, supply of goods, and electricity for ex-FATA/PATA until June 30, 2025, but now import exemptions will demand a pay order—replacing post-dated cheques—to be released only after consumption or installation certificates are submitted to the commissioner within six months.
Web context highlights FATA’s economic challenges post-merger (e.g., 38% poverty rate, web ID: 0), while posts found on X show outrage—many decry the tax hike as a betrayal, others fear regional unrest. Critically, the narrative of “revenue generation” may obscure social fallout—web sources note limited infrastructure, and X sentiment suggests public distrust in government intentions, hinting at potential economic and political tension.
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