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KP exempts former FATA, PATA industries from sales tax

By Business Desk September 8, 2026 Business & Finance
KP exempts

PESHAWAR: The Khyber Pakhtunkhwa government has exempted industries operating in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) from sales tax.

The Khyber Pakhtunkhwa Revenue Authority (KPRA) issued a notification outlining the conditions for the exemption.

According to the notification, the industrial unit must be established in a former FATA or PATA area to qualify for the sales tax exemption. The unit must also be registered as a withholding agent.

Services provided through virtual or remote means will not be covered by the sales tax exemption, the notification said.

The exemption may be withdrawn if the prescribed conditions are not met or if incorrect information is provided by an industrial unit.

The notification will take effect retrospectively from Aug. 1, 2026, and remain valid until June 30, 2028.

It also clarified that taxes paid before the exemption took effect will not be eligible for a refund or adjustment claim.