Deadline for NCP vehicles extended

50,000 of them registered so far in Malakand division, tribal districts

UPPER DIR:

The Khyber-Pakhtunkhwa government has announced an extension of the registration deadline for non-customs paid (NCP) vehicles in the Malakand Division until March 15, a move aimed at accommodating vehicle owners and facilitating compliance.

Alongside the deadline extension, authorities have affirmed the region’s tax-free status, leading to the revival of nine steel mills in the area.

Originally set for December 31, the deadline for profiling and registering NCP vehicles in Malakanad Division and other former Fata districts has been granted a three-month extension.

Sources reveal that approximately 50,000 vehicles have already been registered in this region, emphasizing the community’s response to the initiative.

In the 2016/17 fiscal year, district authorities issued distinctive colored number plates for around 120,000 vehicles in these districts, and this existing registration has been validated.

The Malakand Trade Association has noted that several individuals registered in Malakand Division are conducting tax-free operations in other districts, sparking a social media and media campaign to address this inconsistency.

While technically businesses within the Malakand jurisdiction should enjoy tax-free status, thousands of non-local companies operating with Malakand licenses have escaped tax obligations.

The association has highlighted the need for a fair assessment of businesses to ensure compliance with tax regulations.

Read Malakand challenges NCP vehicle tax

In response to the previous year’s developments, the government established about a dozen registration centers for NCP vehicles, and the Federal Board of Revenue issued tax notices to various factories. This led to the temporary closure of 15 manufacturing plants dealing in ghee, steel, and plastic goods for six months. However, in a positive turn, these plants are now being reopened, contributing to the revival of economic activities in the region.

Muhammad Zahid Khan, in charge of a registration center of Excise and Taxation, revealed that the registration campaign commenced on October 16, registering 49,277 vehicles by December 25.

He emphasized that those yet to register have until March 15 to avail themselves of this opportunity. Additionally, vehicles registered in 2016/17 with three-color number plates are considered valid, eliminating the need for re-profiling.

The labor force in the region has expressed relief with the reopening of steel mills. Maaz Khan, a laborer, shared his joy, stating that he and many others were unemployed for six months during the mill closures. The positive impact of the mills’ reopening on employment has been a significant development for the local community.

Zahid Khan, President of the Swat Hotel Association, highlighted the constitutional status of Malakand as a tax-free zone.

Published in The Express Tribune, January 3^rd, 2024.