PESHAWAR, July 1: Political authorities in Kurram and North Waziristan agencies are still levying octroi tax despite abolition of the tax across the country, officials said. The federal government abolished octroi and export tax across the country in 1998 after enhancing the General Sales Tax (GST) and all districts in the country are receiving their octroi share.

Officials said that of the seven agencies and six Frontier regions of the Federally Administrated Tribal Areas (Fata), octroi tax was extended only to Kurram Agency and North Waziristan Agency before partition.

The British government had introduced octroi tax in these two agencies to meet development and non-development expenditures of the town committees there. Besides, agriculture revenue tax was also imposed in these areas, while other tribal areas were exempted.

An official said that the federal government had released funds to districts in lieu of their share in octroi, however these two agencies, which had municipalities had been excluded from that share.

“The political administration had referred the case to the NWFP governor and the ministry of State and Frontier Region, seeking abolition of the octroi tax from these two agencies, but no action has been taken so far,” said officials in the town committee, Parachinar.

They said that the administration in Kurram and North Waziristan agencies had no other resource head to meet development and non-development of the town committees and neither received any special grant for the purpose.

That was why, they added, the political authorities were still levying octroi tax and three per cent cess on import of goods from Afghanistan. The amount goes to the account of the political agents of the respective agencies.

Political authorities in Kurram Agency had auctioned three octroi collection points for Rs47.50 million for the financial year 2006-07.

The octroi collection point at Parachinar, the agency headquarters, had been auctioned at Rs25 million, Sadda town, in Lower Kurram at Rs17.50 million and the Chappari checkpost point at Rs5 million.

Tribesmen had also demanded of the federal government and the provincial governor to look into the matter and exempt them from double taxation but no relief had been given.