PESHAWAR: Lawmakers in Khyber Pakhtunkhwa Assembly rejected the decision of federal government to impose taxes on the residents of tribal districts and Malakand division.
They threatened to stage protest demonstrations unless the decision was withdrawn. The lawmakers, nearly all representing tribal districts and Malakand division, stated that the Swat State enjoyed a century-long tax-free guarantee after it joined Pakistan. They said that federal government, before taxing tribal districts, should first fulfil its promise of releasing Rs100 billion annually for the region.
While talking during a KP Assembly sitting on supplementary budget held with Speaker Babar Saleem Swati in the chair, Minister for Housing Dr Amjad Ali, who belongs to Swat district, said that federal government announced imposing tax on former Federally Administered Tribal Areas and Provincially Administered Tribal Areas.
He said that no discussion was held over taxing both the areas in the meeting of National Economic Council (NEC). He stated that the areas affected by calamities and militancy should be facilitated instead of imposing taxes on them. He adding that it was violation of the agreement reached with the then Swat State when it was joining Pakistan.
KP Assembly speaker apologises for allowing outsider to enter the house
Fazal Hakim, another lawmaker from treasury benches belonging to Swat, said that they represented people and would protest for the rights of residents of their constituency. He said that once taxes were imposed, industry would shift from the areas and thousands of people would lose their jobs.
The leader of opposition, Dr Ibadullah, who belongs to Shangla district, however, stated that the then chief minister Parvez Khattak had moved a summary for the purpose and he, being part of National Assembly at that time along with his brother MNA Amir Muqam, protested, which compelled the then prime minister Mohammad Nawaz Sharif to withdraw it.
PML-N’s lawmaker Jalal Khan condemned taxing tribal districts and Malakand division. He said that he would request Federal Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muaqam to exempt tribal districts and Malakand division from taxes.
He stated that the opposition was being mistreated, not only by provincial government but also by federal government.
ANP’s Mohammad Nisar, from Bajaur tribal district, said that federal government imposed taxes in former Fata and Malakand but it failed to fulfil its promise of releasing Rs100 billion annually for the region.
He stated that they refused to accept the decision of federal government. He said that federal government was not paying Rs5,000 billion to the province but provincial government committed to surrender Rs109 billion to it.
He criticised funds for defence and said that people were unsafe in Bajaur while militancy could not be rooted out in 25 years.
The adviser to chief minister on industry, commerce and technical education, Humayun Khan from Dir said that people from Malakand division and former Fata paid billions of indirect taxes.
Bajaur’s treasury MPA Anwarzeb Khan said that people of tribal districts were being mistreated. He stated that federal government refused to accept share of tribal districts in NFC.
MPA from Khyber Abdul Ghani warned of protesting outside Parliament House in Islamabad.
Earlier, Dr Ibadullah expressed serious reservations over entry of an outsider to the house.
“Your chair is required to play role of custodian of the house and to maintain privilege of the house,” Mr Ibadullah said. He added that the outsider [the chief minister’s guard] chanted slogans [in favour of former prime minister Imran Khan in the house].
“I admit my fault. The security stopped him but I allowed him,” said Speaker Babar Saleem Swati and apologised.
JUI-F’s Maulana Lutfur Rehman stated that a supplementary budget was always presented in emergency situation. “There is need for steps to financially strengthen the province,” he said, adding that Chashma Lift Canal could not be completed during the last 13 years.
Correspondent from Bajaur adds: Political leaders, parliamentarians and traders here on Saturday criticised federal government for extending taxes to tribal districts and Malakand division in its budget and called for revision of the decision immediately to prevent public unrest.
In their separate statements, PML-N’s Israruddin Khan, MPAs Dr Hamidur Rehman and Anwar Zeb Khan, Bajaur Chamber of Commerce and Industry president Haji Lali Shah, Khar Traders Association president Wajid Khan, PTI’s Guldad Khan, ANP’s Gul Afzal Khan and former MNA Gul Zafar Khan described withdrawal of tax exemption for former Fata and Pata as “absolutely devastating” for the backward areas.
They said that imposing taxes on the people of tribal districts was unacceptable to them because the area lacked basic facilities and remained underdeveloped. They said imposing taxes on tribal districts and Malakand division was injustice with poor people. They said that the government should have first brought those areas at par with settled districts politically, economically and socially.
They urged Prime Minister Shehbaz Sharif to withdraw the decision at the earliest. They urged federal government to first fulfil the Sartaj Aziz Commission’s commitments before imposing taxes on the residents of tribal districts.
They claimed that the government had no legal authority to impose taxes in tribal districts before 2028, as per Sartaj Aziz Commission’s recommendations, which paved the way for the merger of tribal districts into Khyber Pakhtunkhwa through the 25th Amendment in 2018.
They warned of strong public reaction if the decision was not withdrawn immediately.
Published in Dawn, June 28th, 2026