Tribal industrialists seek tax relief in upcoming budget

PESHAWAR: Industrialists from the merged tribal districts have urged the federal government to provide immediate tax relief in the upcoming budget, saying industries in the region are under severe strain and need support to avoid collapse.

At a press conference held at the Peshawar Press Club on Wednesday, FATA Industries leader Khalid Khan Afridi appeared alongside representatives of several chambers of commerce and called for the 10 per cent sales tax imposed on industries in the merged districts to be cut to four per cent. They also sought exemptions and relief in income tax.

Those present at the press conference included Haji Amjad Khan of the Mohmand Chamber of Commerce, Haji Lali Shah of the Bajaur Chamber of Commerce, Inamullah Khan of the Malakand Chamber of Commerce, Engineer Arsalan Khan and Shahzad Arif.

Demand for implementation of merger-time commitments

The industrialists said promises made when the former Federally Administered Tribal Areas were merged with Khyber Pakhtunkhwa should now be honoured. Their central demand was for tax measures that, in their view, would help local industry continue operating under difficult conditions.

Speaking at the press conference, Afridi said the situation facing businesses in the merged districts had become critical and called on the federal government to act without delay by reducing the sales tax burden and extending income tax relief.

Afridi said the industrial sector in the area was facing pressure from both insecurity and taxation. "Our industry is currently standing on the brink of destruction. On one side there is terrorism, and on the other, the government continues to impose new taxes every day. No one is thinking about providing relief to ex-FATA and ex-PATA industries."

He said the condition of industry in the merged districts was already devastated and argued that lowering the sales tax from 10 per cent to four per cent was necessary in the present circumstances.

Appeal to top leadership

Afridi also appealed to Prime Minister Shehbaz Sharif, the finance minister and Field Marshal Syed Asim Munir to meet representatives of the sector, hear their concerns and consider their proposals.

According to Afridi, all industries in FATA have remained closed for the past eight months because of the closure of the Pak-Afghan border. He said the shutdown had left thousands of workers without jobs and added that the wider business community was also facing serious difficulties as a result.

Referring to the impact on labourers, he said many affected workers had little ability to press their case at the federal level. "These workers do not even know the way to Islamabad to raise their voice for their rights, while the business community is facing severe difficulties due to the closure of industries."

The industrialists used the press conference to press for urgent intervention in the federal budget, saying tax concessions and income tax relief were needed to support businesses in the merged districts amid prolonged disruption.