PESHAWAR: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly opposed the 10% sales tax imposed on the merged tribal districts of Khyber Pakhtunkhwa (FATA) in the 2025-26 budget, demanding its immediate withdrawal.
A meeting was held with Federal Minister of State for Tribal Affairs Mubarak Zeb Khan and chamber presidents from ex-FATA regions. The business community rejected the tax, reminding the government of its 10-year tax exemption promise made during the 2018 merger.
Mubarak Zeb Khan assured he would raise the issue with Prime Minister Shehbaz Sharif and push for a resolution. He criticized the one-year extension given instead of the full exemption, calling it a hurdle to investment in the region.
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FPCCI President Atif Ikram Sheikh warned that the new tax would increase unemployment and harm industries in the conflict-affected areas. Bajaur Chamber President Haji Lali Shah highlighted high transport costs and demanded special tax relief for the underdeveloped region.
The FPCCI demanded freight cost reductions and urged the government to maintain the zero-tax policy to support economic growth in tribal districts.
