Senate seeks answers over tax exemptions

Lawmakers gathered on Tuesday to question the government over its failure to fulfill a Rs100 billion commitment to merged districts and the withdrawal of tax exemptions. The session took place at Parliament House, with Senator Manzoor Ahmed Kakar presiding over the proceedings. Maulana Attaur Rehman, representing the JUI-F, highlighted that Rs100 billion had been promised for the merged districts, but the funds were not forthcoming.

He also pointed out that FATA was merged with Khyber Pakhtunkhwa without the consent of its residents, leading to an increase in district problems, including terrorism. Rehman questioned who was behind the terrorism in these districts.

Minister of State for Finance Bilal Azhar Kayani countered that the tax exemption facility in FATA and PATA had been abused, and a sales tax had been imposed following extensive consultations. He affirmed that both sides of the House had appreciated this move. Kayani emphasized that the sacrifices made by law-enforcement agencies in FATA and PATA were commendable and that the government was prepared to consult these regions.

He also noted that the same policy would be applied to Balochistan, with decisions made after consultations with all stakeholders. Adviser to the Prime Minister on Political Affairs Rana Sanaullah confirmed that representatives from FATA and PATA had been part of the discussion committee, and the K-P Chamber of Commerce participated in the consultations, albeit with strong opposition from other chambers.

Senator Maulana Abdul Wasay pointed out that taxes had been imposed in certain parts of Balochistan, where they had previously been absent, and facilities previously available to Balochistan and FATA-PATA had been withdrawn. He raised concerns over security issues in areas like Hanna Urak and Ziarat, questioning how terrorists could reach these locations.

Wasay also mentioned the killing of women and children in a bombing in Surab and the displacement of people in Hanna Urak, adding that a survey was underway to assess the situation. Additionally, he alleged that land in Balochistan, particularly rich in mineral resources, was being allocated rapidly. The PTI senators present in the House did not oppose the Standard Time Ordinance, 1943 (Further Amendment) Bill, 2026, and the Civil Servants Act, 1973 (Amendment) Bill.