The Tehsil Municipal Administration (TMA) in Landi Kotal has commenced collecting taxes from local taxi stands, marking the implementation of the federal government's decision to bring the merged tribal districts into the tax net effective July 1. According to TMA officials, a daily tax of Rs20 per vehicle is now being levied on approximately 10 taxi stands operating in different parts of Landi Kotal Bazaar.
Background of Tax Exemption and Current Enforcement
The federal government had previously exempted the merged tribal districts and Malakand Division from federal taxes for five years, effective June 1, 2018, following their merger with Khyber Pakhtunkhwa. The recent move to collect taxes has sparked opposition from taxi stand owners and local political leaders, who argue that the government is imposing taxes without first providing basic services and economic relief.
TMA Official's Statement on Tax Collection
TMA officials admitted that some stand owners initially resisted the collection but expressed confidence that people would gradually become accustomed to paying the tax. “We have started implementing the government’s policy, and any taxi stand owner who refuses to pay the prescribed tax will face legal action in accordance with the law,” the Tehsil Municipal Officer (TMO) said.
Commercial Banks Also Deducting Taxes
As part of the same policy, commercial banks in Landi Kotal have also begun deducting applicable taxes from account holders from July 1, bringing the region in line with the rest of the country. An official at the Askari Bank Landi Kotal branch said that, on the instructions of the State Bank of Pakistan, the bank had started deducting a 0.8 per cent withholding tax from non-filers.
Taxi Stand Owners Reject Tax Collection
Taxi stand owners, however, rejected the tax collection, insisting that the facilities had been established through their own resources on private property. “We built these taxi stands ourselves, installed sheds, arranged drinking water, and managed other facilities without any support from the authorities. It is unfair for the TMA to collect taxes without providing any services,” said Ali Sher, owner of the Sheikhmal Khel taxi stand. “The government should first provide public facilities and then ask us to pay taxes.”
Political Leaders Criticize Tax Policy
Political Alliance Landi Kotal President Murad Hussain Afridi also criticized the tax policy, saying the merged districts had remained deprived of development for more than seven decades and had suffered further economic devastation due to nearly two decades of militancy and lawlessness. “Imposing taxes under the current circumstances is equivalent to depriving people of their right to earn a livelihood,” Afridi said. “The Torkham border is the main source of livelihood for local residents, but it has remained effectively closed for the past nine months, leaving thousands of families without income.”
Call for Fulfillment of Merger Promises
He urged the federal government to fulfil the promises made at the time of the merger and to prioritize the restoration of trade, employment opportunities, and basic public services before enforcing taxes in the merged districts. He argued that sustainable economic recovery should precede the introduction of new taxation measures.
