Islamabad Chamber of Commerce and Industry has welcomed the Federal government decision for putting Ghee/Steel Industry in Negative list in Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) tax relief for giving them tax relief.
Mr. Ahmed Hasan Moughal, President, Islamabad Chamber of Commerce and Industry has appreciated the government decision for putting ghee and steel industry in negative list in FATA/ PATA for giving tax relief to encourage these sectors and said incentives were causing huge loss to FBR in taxes as steel and ghee industries were shifting from tax area to non-tax area and there was un-healthier competition in the market. He further said labor was shifting from Punjab to KP and federal taxes on steel had reduced by 50% due to shift of steel units from all parts of the country to FATA/PATA which was an alarming situation.
He said that sales tax exemption to FATA/ PATA was creating revenue problem to FBR as this tax was a consumer tax and buyer has to pay it. He said industry has to collect this tax from consumer.
Mr. Rafat Farid, Senior Vice President and Mr. Iftikahr Anwar Sethi said income tax exemption and duty free import of plant and machinery was good incentive for FATA/ PATA as the same is enjoyed by All Economic Zones in the county. They said tax exemption on income was enough incentive for investors to make investments in FATA/ PATA.