Business

New taxpayer zones in Balochistan, K-P approved

Aim to provide special tax incentives, benefits, and streamlined processes to large taxpayers

Irshad Ansari March 22, 2024

Lower corporate tax rates are associated with higher investment-to-GDP and State GDP growth, more rapid employment growth and most importantly higher government tax revenues and foreign exchange reserves. PHOTO:FILE

ISLAMABAD:

The federal government has decided to establish two special large taxpayer zones in Balochistan and Khyber-Pakhtunkhwa (K-P). These zones will be set up within the limits of the Regional Tax Office (RTO) Quetta and Regional Tax Office (RTO) Peshawar. The Board in Council of the Federal Board of Revenue (FBR) has approved the establishment of these zones. Member Inland Revenue Operations and member admin and human resource have been tasked with implementing the decision, with all other FBR members also responsible for its execution.

According to documents obtained by The Express Tribune, in a recent meeting of the FBR Board in Council chaired by Chairman FBR Malik Amjad Zubair Tawana, Mir Badshah Khan Wazir, Member Inland Revenue Operations, presented the case for establishing these special large taxpayer zones in Khyber-Pakhtunkhwa and Balochistan.

Member Inland Revenue Operations briefed the FBR Board in Council about pending litigation in the Supreme Court of Pakistan concerning the transfer of jurisdiction of several taxpayers from one office to another.

In the meeting, the FBR Board in Council extensively reviewed the issue of establishing these zones and discussed the legal aspects and actual position of the matter. It was reiterated that the powers and functions delegated by the Federal Board of Revenue under the FBR Act, 2007, encompass strategic, policy, and operational matters. Operational decisions are delegated to members to facilitate taxpayers and ensure timely decision-making, while strategic and policy decisions remain within the purview of the FBR Board in Council.

After thorough examination, the FBR has approved the establishment of two Special Large Taxpayer Zones within the jurisdiction of the Regional Tax Office (RTO) Quetta and Regional Tax Office (RTO) Peshawar. The FBR Board in Council has directed the Member Inland Revenue Operations to issue necessary notifications in this regard.

The current practice of delegating operational and functional powers of the board to respective members will persist, with strategic and policy-level decision-making under the FBR Act 2007 and Rule 3 of FBR Rules 2007 remaining the responsibility of the FBR Board in Council.

Published in The Express Tribune, March 22^nd, 2024.

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