Peshawar: (RightNow) The Khyber Pakhtunkhwa government has exempted industries in former FATA and PATA from sales tax. The Khyber Pakhtunkhwa Revenue Authority has issued a significant notification regarding this exemption.

According to the notification, the exemption requires industrial units to be established in former FATA or PATA. Additionally, these units must be registered as withholding agents.

Services provided through virtual or remote means are not included in the sales tax exemption. The notification also states that the exemption can be revoked if conditions are not met or false information is provided.

This notification will be effective from August 1, 2026, and will remain in force until June 30, 2028. Claims for refund or adjustment of tax collected before the effective date will not be entertained.

It is noteworthy that the government’s initiative aims to promote industries in former FATA and PATA to improve the economy of these regions.