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The issue of Tax exemption in Malakand

by Editorial
June 11, 2024
in Editorial

These days’ local investors and industrialists are protesting against not giving tax exemption to Malakand form the federal government. If the federal government implemented Tax in Malakand division in the budget, public order problems may arise in the province while the possibility of all parties’ movement will arise for the provincial autonomy.

 On the other hand the Governor of Khyber Pakhtunkhwa Faisal Karim Kundi has also said in clear words that he will support the rights of the province, especially the people of the merged districts and will defend the rights of the province according to the constitution.

Meanwhile a protest movement has started in Malakand division for the extension of tax exemption, which is feared to create problems for tourism.

 In that regard, the president of Malakand Chamber of Commerce and Industry has rejected the implementation of the tax in Malakand division. He said the electricity, water, minerals, hydel power generation, gas and oil royalty to Malakand division and Khyber Pakhtunkhwa is our right.  It is right, despite the presence of abundant resources this area has lagged behind in the race of development from other provinces. It should be remembered that being a frontline province against terrorism, the business community here has faced a lot of difficulties and despite numerous sacrifices, doing business and running industries is not less than a jihad.

 The total electricity production of Khyber Pakhtunkhwa is 6500 MW and the surplus electricity is given to the national grade. Due to the heavy electricity and gas bills, 400 to 600 factories have been closed in the province and most of the business then trade of Khyber Pakhtunkhwa is dependent on Central Asia but due obstacles this market has gone out of the hands of Pakistan OR Pashtuns. Thus the volume of Pakistan-Afghan mutual trade was 3 billion dollars, in which 80% was export and 20% was import but now the volume of this mutual trade has fallen to 500 to 800 million that has fallen mainly due to inconsistency in policies. Another hand the Commercial banks have put Khyber Pakhtunkhwa in the red zone where bank deposits are 15 to 16 percent while the lending rate is less than one percent. Apart from that, the expectations from CPEC have not yet been achieved and the merged districts should be linked to CPEC, so that local industrialists and traders can also benefit from them.

 According to the economic situation including business and industries, the expectations of the poor people should be fulfilled.

Along with that bureaucracy needs to formulate policies in consultation with the business community to achieve the desired goals. In that regard the Governor of Khyber Pakhtunkhwa had said that he will raise the issue of electricity and water royalty with the federal government, while he will fulfill the promises made to the people of Malakand Division before then after that the tax will be implemented. It should be remembered that despite the presence of abundant water in the province, due to the lack of infrastructure the lands are barren and other provinces are using the water of the province. So the businessmen advised that Instead of asking for funds from the federal government, the provinces should present plans to use the water of the province themselves so that the standard of living of the people can be improved. It is the time that ruling parties give the right of the people to the productive capacity of the provinces and fulfill the promises made to the masses of Malakand division before imposing taxes. There is a need for the federal government to first issue orders for reforms in Malakand, after that, the implementation of taxes should be discussed and the rate of those tax levied in the backward districts of Malakand should be very low compared to other districts of the country, then problems of the area will increases by the passage of time.

Tags: ISLAMABADPAKISTANpublic purveiw
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