The Khyber Pakhtunkhwa government exempted the eligible industries of former FATA and PATA from sales tax.

The Khyber Pakhtunkhwa Revenue Authority has issued a notification regarding ex-FATA and PATA, in which it is mandatory for the industrial unit to be established in ex-FATA or PATA for exemption.

The sales tax exemption notification will come into effect from 1st August 2026 and will remain effective till 30th June 2028.

As per the notification, the industrial unit must be registered as a withholding agent, services provided through virtual or remote means are not covered under sales tax exemption.

According to the notification, sales tax exemption can be withdrawn for non-fulfillment of conditions or incorrect information, while no refund or adjustment of tax deposited before enforcement can be claimed.