Government imposes 10% GST on FATA, PATA goods to curb tax abuse

Minister of State for Finance Bilal Azhar Kayani told the National Assembly on Tuesday that a 10 percent General Sales Tax (GST) has been levied on business products originating from the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) to counter the misuse of tax concessions.

Answering a Calling Attention Notice submitted by MNAs Naeema Kishwer Khan, Aliya Kamran, Misbahuddin, and Shahida Begum, Kayani said the decision came on the advice of the Sarhad Chamber of Commerce and Industry and other stakeholders. The move addresses reports of widespread exploitation of tax reliefs that were previously granted to these regions.

He stressed that while residents of FATA and PATA will continue to enjoy income tax exemptions on their businesses, the introduction of GST is intended to promote fair and transparent taxation practices.