FED on ghee, steel units in tribal areas to be cut to 7%

Following K-P parliamentarians' appeal to the prime minister

ISLAMABAD: The Prime Minister Office has issued directive to the Federal Board of Revenue (FBR) to reduce federal excise duty (FED) on the ghee manufacturing and steel units established in newly merged districts of erstwhile Federally Administered Tribal Areas (Fata), from 17% to 7% under the proposed rules and policy.

The directive was given after Standing Committee on Commerce and Textile Industry Chairman Mirza Muhammad Afridi wrote a letter in that regard.

According to documents available with The Express Tribune, Afridi, while referring to a meeting held with the parliamentarians belonging to Khyber-Pakhtunkhwa, appealed to the prime minister to review the 17% FED imposed on ghee and steel units.

The letter stated that people of tribal areas were not against the FED and wanted to contribute their share in the tax revenue, but the 17% tax would create problems for them. It was requested that the tax should be reduced to 7% and then increased gradually. Otherwise, business activities in the region will be affected and it will have a negative impact on the people.

Published in The Express Tribune, July 20^th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.