Unified Opposition to Federal Taxation in Malakand Division
Public representatives, traders, lawyers, journalists, social activists, and members of civil society from across Malakand Division have unanimously rejected the proposed imposition of federal taxes in the region. They insist that the tax-exempt status is a constitutional and historical right that must not be withdrawn.
Participants Demand Economic Relief Instead
Speaking at various public gatherings and consultations across the division, participants urged the federal government to provide economic relief instead of imposing additional financial burdens on a population that has endured decades of militancy, military operations, natural disasters, and economic hardship. The speakers described the proposed taxation as a unilateral move allegedly taken without meaningful consultation with local stakeholders.
Fragile Economy Cannot Bear Additional Taxes
Representatives of the business community said traders are already grappling with declining purchasing power, shrinking markets, and a prolonged economic slowdown. They argued that most businesses and households lack the financial capacity to absorb additional taxes amid rising inflation and increasing living costs.
Peaceful, Constitutional Opposition Pledged
Public representatives said the people of Malakand Division stand united with the business community and will oppose any attempt to abolish or alter the area’s tax-exempt status through peaceful, constitutional, and democratic means. Participants also criticised elected representatives from the region, questioning their role in the ongoing debate and urging them to publicly clarify their position on the proposed taxation.
Allegations of Inadequate Consultation
They alleged that decisions affecting the future of Malakand Division are being taken without adequate consultation with the local population. The speakers further urged the federal and provincial governments to honour commitments made following the merger of the former State of Swat into Pakistan. They claimed those arrangements guaranteed special constitutional protections for the region, including exemption from federal taxes.
Claim of 100-Year Tax-Free Status
They further contended that Malakand Division was granted tax-free status under constitutional arrangements introduced in 1979 for a period of 100 years, arguing that any move to impose federal taxes before the expiry of that period would violate the original agreement. The claim could not be independently verified.
Region's History of Hardship Cited
Residents said the division remains one of Pakistan’s most affected regions, having suffered from terrorism, insurgency, military operations, earthquakes, floods, and other natural calamities that severely damaged infrastructure and disrupted economic activity. They maintained that unemployment remains high, poverty widespread, and investment opportunities limited, making additional taxation particularly burdensome.
Warning of Public Action
Warning of possible public action, representatives of traders and civil society called on the government to immediately withdraw any proposal to impose federal taxes and preserve Malakand Division’s tax-exempt status. They also urged the authorities to remove uncertainty surrounding the issue to restore public confidence.
Peaceful Movement Threatened if Taxes Imposed
The participants warned that if the proposed taxation is implemented, people from all districts of Malakand Division, including Kohistan, would launch a peaceful movement and pursue all available constitutional, legal, and democratic avenues to protect what they described as the region’s longstanding rights.
