KP CM announces abolition of taxes in merged districts, Malakand

PESHAWAR: Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi on Friday announced the abolition of all provincial taxes imposed in the merged districts (erstwhile FATA) and Malakand Division.

The announcement was made during a consultative meeting on the taxation issue held at the Chief Minister’s House. The meeting, chaired by the chief minister, was attended by political leaders, representatives of the business community and members of civil society.

The move comes amid growing opposition to the implementation of taxes in the merged districts and the Provincially Administered Tribal Areas (PATA), where traders and residents have expressed concerns over their potential economic impact.

Speaking on the issue, Khyber Pakhtunkhwa Information Minister Shafi Jan said the federal government’s decision to impose taxes had created serious concern among the people and business community in the merged districts and Malakand Division.

He said the federal government had failed to provide the merged districts with funds promised under the National Finance Commission (NFC) Award.

“Although the merged districts have been administratively integrated into Khyber Pakhtunkhwa, their financial integration remains incomplete,” the minister said.

Shafi Jan added that the province had not received its rightful share under the NFC Award, affecting development projects and public welfare initiatives in the region.

He urged the federal government to take immediate measures to address the longstanding grievances of the people in the merged districts, noting that communities affected by years of terrorism continue to face significant economic and social challenges.

Read more: KP Assembly passes resolution against taxes in Malakand, merged areas

The chief minister’s announcement follows similar concerns raised by Governor Faisal Karim Kundi, who on Thursday opposed the newly imposed taxes in the erstwhile FATA and PATA, saying he stood with the people of Khyber Pakhtunkhwa against what he described as “unjust taxes.”

The governor had called on the provincial government to withdraw taxes falling within its jurisdiction and urged both the federal and provincial governments to adopt a coordinated strategy to protect the interests of traders and residents of the affected areas.

He expressed these views while talking to a delegation of industrialists under the banner of the Pakistan Border Trade Council, led by Khyber Chamber of Commerce and Industry Group Leader and Pakistan Border Trade Council Chairman Syed Jawad Hussain Kazmi, at the Governor House.