PESHAWAR: The Khyber Pakhtunkhwa (KP) government has begun profiling non-custom paid vehicles in the province’s tribal districts and Malakand Division, aiming to integrate them into the tax system.
This follows a recent statement by the federal finance minister proposing taxation in these regions.
The move has sparked resistance from locals and traders. They argue that the region has enjoyed tax exemption since the British era, and imposing taxes now would be “unfair”. Despite the opposition, the government is determined to proceed, citing the need to generate revenue and integrate the region into the national economy.
Excise Department officials acknowledge the region’s historical tax-free status, which has led to the widespread use of non-custom paid vehicles. To address this, the government has profiled over 5000 vehicles so far, with thousands more to be included.
The government estimates that taxing these vehicles could yield billions of rupees. However, traders and locals fear the move will impose a heavy financial burden and harm the local economy.
The government’s initiative to introduce taxation is seen as a major step towards mainstreaming the tribal districts and Malakand’s economy. However, successful implementation hinges on addressing the concerns of locals and traders, whose resistance promises to be a major challenge.Â
In February, the deployment of Excise officers in Malakand Division sparked protests and shutdowns. Locals and traders remain resolute in their opposition, citing the region’s longstanding tax exemption.
