ISLAMABAD: The Senate Standing Committee on Finance and Revenue, Wednesday, endorsed a proposal of the business community for not extending sales tax exemption in erstwhile tribal areas beyond June 30, 2025. The sales tax exemption to erstwhile tribal areas would expire on June 30, 2025. Chairman of the committee Saleem Mandviwalla was of the view that the formal sectors such as steel, ghee/ cooking oil and others have disadvantageous position due to this exemption. “We are well aware of the issue and taken the decision and we will make recommendation,” he added. The committee met here on Wednesday to initiate for pre-budget 2025-26 consultations with stakeholders including Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Chambers and Associations. Jawed Bilwani, president Karachi Chamber of Commerce and Industry (KCCI) highlighted the special tax regime in the ex-FATA region and pointed out that a major portion of tea imports is routed through this region due to the significantly lower taxes. He also highlighted the issue of low duties and taxes on the raw materials of the plastic industry, particularly polyethylene for manufacturers. He reiterated that manufacturers import more raw materials due to these low taxes and then sell them at higher prices. Moreover, he echoed his concerns about the refund of sales tax after nine months despite the Federal Board of Revenue (FBR)'s claims of refunds within 72 hours. He stated that the late refunds and advance taxes have increased the cost of doing business manifold. Mandviwalla stated that the FBR had admitted before the committee the 72-hour refund policy of sales tax. The committee decided to take up the matter in the upcoming budget meetings. Exporters recommended to reinstating the zero-rating of local supplied to registered exporters under export facilitation scheme (EFS) to ease down the liquidity pressure and smooth operation. Further, they proposed to consider zero-GST on utilities (power and gas) to exporters registered in the EFS to facilitate the exports ensuring availability of required/ adequate liquidity and smooth cash flow, to boost the confidence of exporters to enhance their…