Malakand challenges NCP vehicle tax

Govt initiates vehicle registration, raising questions about the region’s historical tax exemption

UPPER DIR:

Amid strong local opposition, the Khyber-Pakhtunkhwa government has commenced the registration of non-customs paid (NCP) vehicles in four districts of the Malakand Division.

To facilitate this, excise registration offices have been established in each of these districts. It’s important to note that the Malakand Division, consisting of seven districts, has traditionally been a tax-free region since 1953. However, the registration of NCP vehicles has led to significant protests in the affected districts.

Local residents in these mountainous areas, where economic opportunities are limited, view this registration as a preliminary step towards imposing taxes in the region.

Many are demanding a 100-year tax exemption due to the ongoing underdevelopment and scarcity of job prospects.

Also read:Mohmand to register NCP vehicles

On October 13, Commissioner Malakand Division, Saqib Aslam Raza, issued a notification instructing all districts to collect data on showrooms dealing with NCP vehicles by October 16. This directive sparked political rallies and protests in several districts, including Dir Lower, Dir Upper, Swat Upper, Swat Lower, Chitral Lower, and Chitral Upper.

On October 18, the Khyber-Pakhtunkhwa Excise and Taxation Department announced the establishment of offices in Matta, Swat, Dir Lower, and Dir Upper for profiling NCP vehicles. Muhammad Irshad Khan, the Excise and Taxation Officer (ETO) responsible for the excise profiling office in Dir, stated that they have been tasked with registering all NCP vehicles in use by the general public and those available for sale at showrooms. Vehicle owners have been given a one-month window to complete their registration, and the process is already underway. Strict actions will be taken against those who fail to comply with the Customs Act in the future.

Approximately 2,000 showrooms are involved in the sale and purchase of NCP vehicles within the division. During a meeting with the owners, the deputy commissioners directed them to discontinue dealing in NCP vehicles and promptly submit their vehicle data. However, owners neither agreed nor disagreed during this gathering.

Read: JI opposes NCP vehicle crackdown in Malakand

Former provincial president of the Pakistan Peoples Party (PPP), Najamudin Khan, highlighted the historical context of the Malakand Division, explaining that all the districts within it were formerly princely states. During the process of their merger with the government, promises were made that the Malakand Division would remain tax-free.

He emphasized that the Malakand region faces economic and educational challenges, characterizing it as economically underdeveloped. In 2012, the PPP government introduced an amnesty program for NCP vehicles, resulting in the registration of 70,000 such vehicles. Khan asserted that this initiative greatly benefited the region.

Abdur Rahim, President of the Trade Union, acknowledged the pivotal role played by Wali Swat in designating Malakand as a tax-free zone. However, he expressed strong disapproval of the elimination of this special status following the merger of ex-Fata, deeming it unacceptable.

 

Published in The Express Tribune, October 23^rd, 2023.