Senate seeks answers over tax exemptions

Government says exemptions were misused, promises consultations with stakeholders

ISLAMABAD:

Lawmakers on Tuesday raised concerns over the unfulfilled Rs100 billion commitment to the merged districts and the withdrawal of previously available facilities.

The session was held at Parliament House under the chairmanship of Senator Manzoor Ahmed Kakar, who was presiding over the proceedings.

Speaking on a calling-attention notice regarding the withdrawal of tax exemptions for the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), JUI-F Senator Maulana Attaur Rehman said Rs100 billion had been promised for the merged districts but had not been provided.

He said FATA had been merged with Khyber Pakhtunkhwa without consulting its people and that the problems of the districts had increased after the merger. "There is terrorism in these districts. Who is behind this terrorism?" he asked.

However, Minister of State for Finance Bilal Azhar Kayani pointed out that the tax exemption facility in FATA and PATA had also been misused, adding that sales tax had been imposed last year after extensive consultations.

He said the move had been appreciated by both sides of the House and added that the sacrifices being made by law-enforcement agencies in FATA and PATA were also worthy of recognition.

"The government is still ready to consult our colleagues from FATA and PATA," he said, adding that relevant institutions would also be included in the consultations. He said the same policy was being followed in the case of Balochistan and that a decision would be taken after hearing all stakeholders.

Adviser to the Prime Minister on Political Affairs Rana Sanaullah said representatives from FATA and PATA had also been part of the committee that discussed the issue.

He said the K-P Chamber of Commerce had also participated in the consultations, while other chambers had strongly opposed the tax exemptions.

"Other chambers were saying that we could not do business at all," he said, adding that there was considerable unease within the business community over the tax exemptions. The exemptions were subsequently withdrawn, he added.

Senator Maulana Abdul Wasay said taxes had also been imposed in parts of Balochistan where there had previously been none. He said facilities previously available to people in Balochistan and FATA-PATA had also been withdrawn.

"If there is no facilitator in Hanna Urak and Ziarat, then how did terrorists reach there?" he asked.

He said women and children had been killed in a bombing in Surab, while people in Hanna Urak had been displaced and a survey had subsequently been launched there. He further alleged that land in Balochistan was being allotted rapidly, including land rich in mineral resources.

The House passed the Standard Time Ordinance, 1943 (Further Amendment) Bill, 2026, and the Civil Servants Act, 1973 (Amendment) Bill. The PTI senators present in the House did not oppose the first bill, while PTI Senator Mohsin Aziz voted in favour of the second bill.