PESHAWAR: The Khyber Pakhtunkhwa government has exempted industries located in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) from sales tax.
The Khyber Pakhtunkhwa Revenue Authority (KPRA) has issued a notification to this effect, outlining the conditions that industrial units must meet to qualify for the exemption.
According to the notification, an industrial unit must be established in the former FATA or PATA areas to qualify for the sales tax exemption.
The industrial unit must also be registered as a withholding agent. However, services provided through virtual or remote means will not be covered under the sales tax exemption.
The notification states that the exemption may be withdrawn if the prescribed conditions are not fulfilled or if incorrect information is provided.
The sales tax exemption notification will take effect retrospectively from August 1, 2026, and will remain effective until June 30, 2028.
The notification further clarifies that no claim for refund or adjustment of taxes deposited before the implementation of the exemption will be entertained.
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