KP CM urges PM to defer withdrawal of tax exemptions for merged districts, Malakand

• KP CM says proposed withdrawal source of concern.
• KP bearing burden of merger alone: CM Afridi.
• Federal govt yet to fulfil commitments: KP CM.
  

Khyber Pakhtunkhwa Chief Minister Sohail Afridi has urged Prime Minister Shehbaz Sharif to review and defer the proposed withdrawal of tax exemptions for merged districts and Malakand Division of the province.

The proposed withdrawal of tax exemptions for the merged districts and Malakand Division has become a source of public concern, the KP chief executive told the prime minister in a letter.

He said that the issue was "not about taxation, but the federal government's departure from commitments made at the time of the merger".

CM Afridi said that KP continued to bear the burden of the merger alone as the federal government had yet to fulfil its commitments.

He said the province had still not received the agreed share for the merged districts under the National Finance Commission (NFC).

According to the KP chief minister, the tax exemptions for the merged districts and Malakand Division had been granted to encourage investment and promote economic development in the areas.

He noted that the federal government had constituted a committee to review the proposed tax measures, but the committee was unable to finalise any recommendations.

CM Afridi further said that the decision to end the tax exemption had been taken without taking the provincial government into confidence.

He added that the KP Assembly had unanimously passed a resolution seeking the postponement of the proposed tax measures.

The provincial assembly on June 28 unanimously passed the resolution opposing the imposition of new taxes in Malakand Division and merged districts.

The resolution, moved by ruling party MPA Dr Hamid Ur Rehman, was jointly backed by both treasury and opposition members.

Leader of the Opposition Dr Ibadullah Khan had said any attempt to impose taxes on Malakand Division would be strongly resisted. "There will be no compromise on the people's rights, constitutional tax exemption and the region's historic status," he said.

He had said the people of Malakand had made unparalleled sacrifices during terrorism, earthquakes, floods and prolonged economic hardship. "Imposing additional taxes on this region amounts to economic injustice, administrative failure and an anti-people decision," he added.