ISLAMABAD: Prime Minister Shahid Khaqan Abbasi Thursday chaired a meeting of the Economic Coordination Committee (ECC) at PM’s Office which approved tax exemptions and other incentives for the next five years for the people of erstwhile Fata and Pata.
President Mamnoon Hussain gave assent to the 31st constitutional amendment on Thursday and with this fata and pata have become part of Khyber Pakhtunkhwa. Fata and Pata will be exempted of income tax on profits and gains of existing businesses conducted by individuals for a period of five years. These businesses, however, need to be registered with Federal Board of Revenue (FBR) by September 30, 2018. Exemption from sales tax to the retailers has been made to facilitate the general consumers. Domestic consumers of electricity would be exempted from sales tax on domestic consumption of electricity.
The Federal Excise Act 2005 shall replace the erstwhile Central Excise Act 1944. Non-custom paid vehicles would be allowed to be used in erstwhile Fata/Pata for a period of five years ending on June 30, 2023. However, these vehicles will not be allowed to cross over to other areas of the country. On the expiry of the five years’ relaxation period, the vehicles would be regularised on payment of leviable duty and taxes.
Exemption will be granted from all withholding taxes, except on salary. Any person seeking to set up new industrial undertaking is granted exemption from income tax subject to prior approval of the ECC.
The meeting discussed the issue of revocation of Neelum-Jhelum surcharge and decided that the surcharge would end on achieving commercial operation date of the project. The ECC also approved relending terms for Pakistan Mortgage Refinance Company Limited (PMRCL) for ensuring efficacy of the facility towards promoting low cost/affordable housing in Pakistan. At the conclusion of the meeting, the prime minister appreciated valuable contributions of the ECC members towards taking informed decisions in the larger public interests. The secretary finance, on behalf of the ECC members, thanked the prime minister for his continued guidance and support.
In recognition of the sacrifice and efforts made during the unfortunate incident of bridge collapse in district Neelum, Azad Jammu and Kashmir, on May 13, the prime minister approved immediate provision of Rs3 million to the parents of Saim Shafat, son of Shafat Hussain, and Rs1 million as reward to Mukhtiar, son of Zeetullah.
Saim Shafat, 12, sacrificed his life while making a heroic effort to warn tourists of the imminent collapse of the bridge in Kundal Shai area of Neelum. Mukhtiar, son of Zeetullah, risked his life to save two tourists from drowning during the same incident.
The prime minister directed the Finance Division to immediately transfer the amount of Rs4 million to the Azad Government of Jammu and Kashmir for onward payment to the nominees.
Meanwhile, Prime Minister Abbasi appreciated sacrifices and contributions of Pakistan Army in bringing back peace to the country.
In his address to the student officers and staff college Quetta, he talked about progress Pakistan made during the tenure, challenges facing Pakistan and the way forward. The prime minster said that Pakistan has great potential and through national cohesion we can defeat any challenge ahead.
Chief of Army Staff (COAS) General Qamar Javed Bajwa accompanied the prime minister. Shahid Khaqan Abbasi is the first prime minister who visited and addressed the Staff College Quetta.