Islamabad (Khyber Mail): The Supreme Court of Pakistan has suspended the ruling of the Peshawar High Court that had invalidated the Sales Tax Amendment Act in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA). As a result, the act has been reinstated in these regions.
Following the constitutional amendment in 2018, FATA and PATA were merged into Khyber Pakhtunkhwa, leading to the implementation of federal laws, including the Sales Tax Act 1990. The government granted a five-year tax exemption to businesses in these areas, which expired on June 30, 2023.
The Peshawar High Court had previously ruled that imposing sales tax on industrial units in these regions was unconstitutional, effectively exempting them from the tax. However, the Supreme Court’s latest decision overturns that verdict, confirming that the sales tax on industries in former FATA and PATA is legally valid and enforceable.
With this decision, industries in these regions—especially those in the ghee and steel sectors—will now be subject to sales tax once again. Business owners anticipate an increase in operational costs, which could affect industrial activity and economic conditions in the area.