PESHAWAR: In a significant development, Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi announced the removal of all provincial taxes levied in the merged districts (formerly FATA) and Malakand Division. The decision was communicated during a consultative session focused on taxation challenges, held at the Chief Minister’s residence. The meeting was chaired by the chief minister and included discussions with political leaders, business representatives, and civil society members.
The move responds to mounting opposition from local residents and traders in the merged districts and PATA, who have voiced serious concerns about the economic repercussions of the recent tax impositions.
During the meeting, KP Information Minister Shafi Jan highlighted that the federal government’s decision to introduce taxes had raised alarm among the local populace and business community. He pointed out that the federal government has yet to fulfill its financial commitments under the National Finance Commission (NFC) Award, despite the administrative integration of these districts into KP.
“The financial integration remains incomplete,” Jan emphasized, adding that the lack of proper funding has hampered ongoing development projects and social welfare programs in the region. He called on the federal authorities to urgently address these longstanding grievances to help communities still grappling with the aftermath of terrorism and economic hardship.
This announcement comes on the heels of sentiments expressed by Governor Faisal Karim Kundi, who on Thursday voiced strong opposition to the tax measures in former FATA and PATA regions. The governor expressed solidarity with the people of KP and urged the provincial government to cancel taxes within its jurisdiction.
Kundi also appealed for a coordinated approach between federal and provincial authorities to safeguard the interests of traders and local residents. His remarks were made during a meeting with a delegation of industrialists from the Pakistan Border Trade Council, led by Syed Jawad Hussain Kazmi of the Khyber Chamber of Commerce and Industry, at the Governor House.
