ISLAMABAD: The Federal Investigation Agency (FIA) has launched an investigation into alleged massive tax evasion in the tax-free zones of Malakand and Khyber Pakhtunkhwa (KP).
According to a Geo News report, FIA sources said the agency is investigating alleged tax evasion amounting to Rs1.12 trillion involving imported materials in the tax-free zones.
A five-member investigation team, headed by the Additional Director General FIA North, has been constituted to probe the alleged irregularities.
According to sources, 108 companies have allegedly been involved in tax evasion amounting to Rs389 billion. Notices have reportedly been issued to the companies as part of the investigation.
The sources further said that the owners and managing director of a private edible oil company have also been summoned for questioning.
The investigation was initiated on the recommendation of the Senate Standing Committee on Interior, according to FIA sources.
Authorities are expected to examine import records, tax liabilities and the alleged misuse of tax exemptions to determine the extent of the suspected evasion and identify those responsible.
Big Relief for Former FATA, PATA Industries as KP Announces Sales Tax Exemption
Earlier, the Khyber Pakhtunkhwa (KP) 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 outlining the conditions for availing the exemption.
As per the notification, the industrial unit should have a presence in the former FATA and PATA areas to avail of the sales tax exemption. Additionally, the industrial unit needs to be registered as a withholding agent.
However, services provided virtually or remotely shall not be eligible for the sales tax exemption.
It has been mentioned in the notification that if the specified conditions are not met or any wrong information is submitted by the industrial unit, the exemption shall be withdrawn.
Sales tax exemption has come into effect from August 1, 2026, and shall continue till June 30, 2028.
Furthermore, the notification says that the taxes paid prior to the exemption will not be eligible for refund and adjustment claims.
