By Sudhir Ahmad Afridi
PESHAWAR: An All Parties Conference (APC), organised by the Khyber Chamber of Commerce and Industry (KCCI), has rejected the federal government’s decision to impose taxes on the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), demanding restoration of tax exemptions and implementation of commitments made at the time of their merger with Khyber Pakhtunkhwa.
The conference, held at a private hall in Peshawar, was attended by representatives of business communities, district chambers of commerce, traders’ organisations, contractors’ associations, industrialists, prominent former parliamentarians from the merged districts and members of civil society.
Participants, including representatives of the Khyber Contractors Association, All Tribal Contractors Association, chambers of commerce from the merged districts and other representative bodies, unanimously adopted a declaration rejecting the imposition of new taxes on the former tribal areas.
The declaration stated that at the time of the merger of former FATA and PATA with Khyber Pakhtunkhwa, the state had committed to providing a comprehensive economic rehabilitation package, rebuilding infrastructure, improving education and healthcare facilities, creating employment opportunities, promoting trade and industry and continuing tax exemptions for the region.
However, participants expressed concern that most of these commitments had remained unfulfilled, while new taxes were being imposed despite the fragile economic situation of the merged districts.
The conference noted that the local economy had yet to recover fully, with industries and businesses facing serious challenges, declining investment, rising unemployment and prolonged economic stagnation.
The declaration further highlighted that the merged districts were facing another wave of security challenges, with deteriorating law and order, restrictions on movement and increasing difficulties for traders and businesses.
Participants argued that imposing additional taxes under such circumstances would further harm the local economy and contradict the constitutional, economic and development assurances made during the merger process, including recommendations of the Sartaj Aziz Reforms Committee.
The APC urged the federal government to immediately honour all commitments made to former FATA and PATA at the time of the merger, restore tax exemptions, continue special incentives for an appropriate period and fully implement the Rs100 billion annual development package for the merged districts spread over 10 years.
The participants also called for urgent measures to restore peace and security, encourage investment, revive trade and industry and accelerate socio-economic development in the region.
The conference resolved that if the government failed to address the legitimate demands of the people, traders and business community of the merged districts, they would announce a future course of action and continue their struggle through constitutional, legal and democratic forums to safeguard their rights.
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