SHANGLA – Despite approval by the Khyber Pakhtunkhwa Cabinet, the formal notification for withdrawal of provincial taxes in Malakand Division, the former Provincially Administered Tribal Areas (PATA) and the merged tribal districts is still awaited, prolonging uncertainty among residents, traders and the business community.
The delay has raised concerns among stakeholders, who have urged the provincial government to issue the notification without further delay and give legal and administrative effect to its announced decision.
The imposition of provincial taxes in Malakand Division and the former tribal areas has long been a contentious issue, with residents, traders, lawyers, journalists and political and social representatives arguing that the region’s historical and constitutional status should be taken into account before imposing additional financial burdens on its people.
The issue gained renewed momentum after a Grand Qaumi Jirga, attended by representatives from various parts of Malakand Division, discussed the matter at length and demanded withdrawal of the taxes. Participants argued that the people of the region had legitimate grounds for seeking special tax treatment in view of its distinctive historical and constitutional circumstances.
Following sustained public pressure and consultations with stakeholders, the provincial government announced the withdrawal of provincial taxes from Malakand Division and the former tribal areas. The announcement was widely welcomed, with residents and traders expecting the decision to translate into immediate relief for businesses and ordinary citizens.
The Khyber Pakhtunkhwa Cabinet subsequently approved draft notifications concerning the proposed tax exemptions for specified sectors in Malakand Division and the former tribal areas.
However, the formal notification has yet to be issued, leaving uncertainty over the practical implementation of the Cabinet decision. Stakeholders said the absence of an official notification had created confusion among taxpayers, businesses and government departments over whether the announced exemptions were already applicable.
They said the Finance Department, Khyber Pakhtunkhwa Revenue Authority (KPRA), Accountant General Pakistan Revenues (AGPR) and relevant accounts offices needed to be formally notified of the decision through clear written instructions to ensure its uniform implementation.
The stakeholders warned that, without such directives, tax-collecting agencies could continue to apply existing provisions, potentially undermining the relief announced by the government and creating further complications for businesses and citizens.
They called on Chief Minister, the provincial finance minister and senior officials of the Finance Department to intervene and ensure the immediate issuance of the notification, with copies circulated to all relevant departments, institutions and tax-collecting agencies.
The stakeholders said the government’s announcement, made after prolonged public pressure, consultations and the Grand Qaumi Jirga, had generated considerable expectations among the people. They therefore called for the process to be completed immediately and the Cabinet-approved tax relief to be given legal and administrative effect without any further delay.
They stressed that the decision should not remain confined to a government announcement or Cabinet approval, but should be implemented through formal administrative orders so that residents, traders and businesses across the affected areas could actually benefit from the promised relief.
They warned that any further delay could undermine public confidence in the government’s commitment and prolong uncertainty for taxpayers and the business community in Malakand Division, the former PATA and the merged tribal districts.
