By Ashrafuddin Pirzada
LANDIKOTAL: Patron-in-Chief of the Khyber Chamber of Commerce and Industries (KCCI) Syed Jawad Hussain Kazmi, in a meeting with federal finance minister Senator Muhammad Aurangzeb on Thursday, strongly opposed the imposition of 10 percent sales tax in the merged districts and Malakand, calling it a blow to war-affected industries and a threat to regional stability.
Syed Jawad Hussain Kazmi expressed his concerns during a high-level meeting with Federal Finance Minister Senator Muhammad Aurangzeb in Islamabad on Thursday.
He voiced strong opposition to the federal government’s decision to impose a 10 percent sales tax in the merged tribal districts and Malakand division.
Kazmi said the tax policy introduced in the latest federal budget was unjust for regions that have suffered decades of terrorism, instability and economic neglect. “These areas are still in recovery mode, and the imposition of sales tax is like punishing the people and industrialists who are already on the edge,” he stated.
He warned that enforcing sales tax in such fragile regions would further cripple the already devastated industries, trigger factory closures and lead to a dangerous rise in unemployment and inflation. “The economic frustration could directly impact law and order, making the situation more volatile,” he added.
Kazmi emphasized that the merged districts and Malakand division deserve tax exemptions until at least 2030 to stabilize their economies and encourage industrial revival. He urged the government to adopt a more inclusive and supportive tax policy for these underprivileged regions.
During the Islamabad meeting, leaders from various chambers of commerce and trader organizations joined Kazmi in raising collective concerns. The delegation specifically highlighted objections to Section 37A of the tax law, which has caused unrest among traders due to its complex and rigid compliance demands.
In response, Finance Minister Aurangzeb assured the delegation that their concerns were being taken seriously. He announced the formation of a committee led by the Prime Minister’s special assistant on industries and production, Haroon Akhtar. The committee includes representatives from the business community and chamber leaders and is tasked with submitting comprehensive, practical recommendations within a month.
Kazmi welcomed the move and expressed hope that the committee’s findings would lead to a revised, business-friendly taxation framework that protects the interests of industrialists, promotes investment and ensures sustainable economic growth in conflict-hit areas.
