Tribal District Lawmakers Threaten Protest Over New Taxes
Lawmakers from Khyber Pakhtunkhwa’s tribal districts and Malakand division have warned of street protests after rejecting the federal government’s move to impose taxes on residents of the formerly tax-exempt regions. The issue surfaced during a KP Assembly session in Peshawar, where treasury and opposition members criticised the decision and demanded its withdrawal.
The debate took place during proceedings on the supplementary budget, with Speaker Babar Saleem Swati presiding over the session. Legislators from the merged tribal areas and Malakand argued that the federal government should not introduce new taxes in regions still recovering from militancy, displacement, weak infrastructure and years of underdevelopment.
The lawmakers maintained that the federal government had promised major financial support for the merged districts after their integration into Khyber Pakhtunkhwa. They said Islamabad should first honour the commitment of providing Rs100 billion annually for the region before asking residents to carry additional tax burdens.
KP Housing Minister Dr Amjad Ali, who belongs to Swat, said the tax proposal had not been discussed in the National Economic Council in the manner such a sensitive issue required. He argued that areas affected by conflict and natural disasters needed relief, investment and rehabilitation rather than immediate taxation.
Several lawmakers warned that the decision could trigger economic disruption and public unrest. Fazal Hakim said elected representatives would stand with their constituents if taxes were enforced, while another member cautioned that industries could relocate from the affected areas, putting jobs and local businesses at risk.
Opposition leader Dr Ibadullah also opposed the move, recalling that a previous attempt to impose taxes on the region had faced resistance and was later withdrawn. PML-N lawmaker Jalal Khan said he would request the relevant federal minister to seek exemption for the tribal districts and Malakand division.
Representatives from Bajaur and other merged districts linked the taxation debate to wider grievances over delayed funds, security concerns and what they described as unequal treatment by the federal government. ANP’s Mohammad Nisar said the state had not fulfilled its fiscal pledges to the region, while Khyber MPA Abdul Ghani warned of demonstrations outside Parliament House in Islamabad.
The controversy reflects the unresolved challenges that followed the merger of the former Federally Administered Tribal Areas with KP through the 25th Constitutional Amendment in 2018. The merger was presented as a step toward constitutional rights and mainstream governance, but many local leaders argue that promised development, administrative capacity and economic support have not arrived at the required scale.
Political and business figures from Bajaur also urged Prime Minister Shehbaz Sharif to revisit the decision, saying taxes should not be introduced until the region is brought closer to settled districts in terms of infrastructure, services and economic opportunity. Some leaders claimed that earlier reform commitments supported continuing exemptions for a transition period.
The issue is likely to become a major political flashpoint if the federal government proceeds without consultations. For Pakistan, the dispute carries implications beyond taxation: it touches on federal-provincial relations, post-merger stability, public trust in reform promises and the economic future of border regions already facing security and development pressures.