Finmin to discuss extension of Fata tax exemptions with IMF, says Sanaullah after PTI-govt meeting

ISLAMABAD: The government on Friday assured the PTI that it would discuss with the International Monetary Fund (IMF) the extension of tax exemptions for the merged districts of the erstwhile Fata and Pata regions, according to federal minister Rana Sanaullah.

Sanaullah, who also serves as the prime minister’s adviser on political affairs, made the remarks after key leaders from the government and the PTI met at Parliament House.

“The finance minister has promised [the opposition] that he will seek to extend these exemptions after speaking with the IMF, and God-willing, will make efforts for it,” Sanaullah told reporters after the meeting.

The meeting was held in the chamber of Finance Minister Muhammad Aurangzeb. Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muqam also attended from the government side, while Asad Qaiser, Junaid Akbar and PTI MNAs from the erstwhile Fata represented the opposition.

Sanaullah said the opposition had raised concerns with Prime Minister Shehbaz Sharif in the National Assembly earlier in the day over the expiry of tax exemptions for the erstwhile Fata and Pata regions on June 30.

He said that the prime minister subsequently directed him, Aurangzeb and Amir Muqam to meet the opposition. The PML-N leader noted that Muqam had already been making efforts on the matter.

He expressed the hope that the tax waivers would be extended after taking the IMF into confidence.

The erstwhile Fata and Pata, which were merged with Khyber Pakhtunkhwa in 2018, are exempt from income tax on profits and gains from existing businesses operated by individuals. There are also other tax exemptions, such as sales tax exemptions for retailers.

Speaking during the budget debate in the NA on Tuesday, Muqam had called for the continuation of tax exemptions in former Fata and Pata, emphasising that the regions continue to face economic challenges due to years of conflict and displacement.

Earlier this month, the Fata Loya Jirga (FLJ) opposed the imposition of any taxes in the merged tribal districts, saying such a move would be unconstitutional and illegal as long as a case against the Fata-KP merger is pending with the Supreme Court.

It also threatened to stage protest demonstrations in all seven tribal districts on the matter.

‘Dialogue foundation of democracy’

Commenting on the political matters discussed during the meeting, Sanaullah said his delegation had stressed the importance of dialogue.

“This is the foundation of democracy,” he remarked.

Noting that Prime Minister Shehbaz Sharif had reiterated his offer for talks and for signing a “Charter of Pakistan”, Sanaullah said, “That offer should be accepted. You should hold a dialogue with the prime minister.

“You can discuss any issue you want to. He is willing to listen and discuss any subject,” the prime minister’s adviser added.

Describing the opposition’s response as “positive”, Sanaullah said PTI MNAs responded that consultations were ongoing within the party and that they would finalise a decision soon.

Sanaullah said the government delegation appreciated the opposition’s support for the resolution passed unanimously by the NA earlier today, which lauded the role of Pakistan’s leadership in the US-Iran peace agreement.

Talking about the health of PTI founder Imran Khan, who is under treatment for an eye ailment while imprisoned at Rawalpindi’s Adiala jail, Sanaullah said the ex-premier was being provided with the “best treatment available in Pakistan”.

The minister further said that the PTI founder was in judicial custody and his release was only possible through the courts.

On the ongoing tense situation in AJK, Sanaullah said the “heinous conspiracy to create agitation and interrupt the freedom movement for a free [occupied] Kashmir has been brought under control”.

Sanaullah expressed the hope that the “slight interruption in supply [chains]” would be resolved within a week.

On his part, PTI’s Qaiser said the opposition was willing to sign a “Charter of Democracy”, stressing that it would mean “a level playing field for all”.

“There should be no [political] vendetta against anyone, the judiciary should be independent and the parliament should be strengthened,” he said while speaking to reporters after the meeting.

“We are ready for talks at all times for true democracy,” the senior PTI leader affirmed.

Qaiser said the two sides discussed the proposed budget and raised the issues they had regarding it with the finance minister.

He mentioned the opposition’s concerns about a proposed tax on tobacco and said some measures would “ruin whatever economy is left” as trade with Afghanistan remains suspended.

Replying to a question, the PTI leader said the meeting was held at the desire of both the opposition and the government. ...