July 31, 2002	Wednesday	Jamadi-ul-Awwal 20,1423

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ISLAMABAD, July 30: The president has sought views of the NWFP and Balochistan governors and federal ministries of commerce and law on extending the jurisdiction of the acts passed by parliament to FATA through a change in the Federal Legislative List.

The president had earlier asked the Central Board of Revenue to look into the practical implications of a amendment proposed in Article 247 (3) of the Constitution, sources told Dawn.

Because of the limitations of the power of parliament under the 1973 Constitution, FATA as well as the Provincially Administered Tribal Areas were being used as safe havens by tax evaders and smugglers. This caused loss to the government worth billions of rupees every year, sources said.

For instance, a luxury vehicle worth Rs1.5 million is available for Rs500,000 to Rs700,000 in FATA and PATA. Thus, most of the influential people had got their vehicles registered in these tribal areas and were roaming about the country freely.

Industrialists have also started moving their industries to the tribal areas to enjoy tax exemption due to non-application of fiscal and tax laws in these areas. These industrialists were not only evading tax but also consuming big chunks of electricity at lower rates and without proper meter reading.

The proposed amendments would bring FATA and PATA on a par with other parts of the country as far as fiscal laws are concerned.

Sources said that due to the failure of provincial governors to apply certain tax laws to PATA, the president had exercised his power under clause (4) of Article 247 and applied the Customs Act, 1969, to PATA of the NWFP and Balochistan vide Regulation III of 1975 and Regulation I of 1977, respectively.

Yet, the implementation of the Customs Act, 1969, there has not yet been achieved because of the persistent reluctance of the provincial governments to establish the writ of this law.