The government has rejected the opposition’s request to stop a 10% sales tax in FATA and PATA. Officials said the tax exemption in these regions will be removed slowly, not all at once. This decision has created division within PTI and sparked political tension.
During a detailed meeting, a PTI team led by former National Assembly Speaker Asad Qaiser met with the FBR and finance officials. The government team explained the reasons behind ending the tax benefits. They said the region can no longer stay outside the national tax net.
Sources say PTI is now split on the issue. In the Senate, some members, including Opposition Leader Shibli Faraz, support adding more taxes to FATA and PATA. But in the National Assembly, PTI leaders oppose removing the tax break and demand it to continue.
The FBR told PTI that taxes in these areas will rise gradually, not overnight. They also said that these changes are important for economic equality and revenue generation. The aim is to include FATA and PATA fully in Pakistan’s financial system.
Residents of FATA and PATA, however, fear that new taxes will raise living costs. Local businesses and shopkeepers say they are already struggling. Many have asked for more time or support before these taxes are fully applied.