Khanpur dam tourism halted over tax dispute

TMO, AC and police take control of water sports equipment

HARIPUR:

Tourism activities at Khanpur Dam have come to a standstill after the Assistant Commissioner and Tehsil Municipal Officer (TMO) halted all water sports due to unpaid taxes. As a result, the Tehsil Municipal Administration (TMA) and police have sealed off all water sports facilities, leaving tourists and local businesses in a difficult position.

Boats Association at Khanpur Dam President Raja Hanif Ahsan Kayani explained that the Water and Power Development Authority (WAPDA) had instructed the association to stop paying taxes to the TMA, leading to the current standoff. In response, the assistant commissioner of Khanpur, TMO, and police have taken control of the water sports equipment and warned the association members of legal action if taxes remain unpaid.

They also threatened the association's members, warning that if they didn't pay taxes, they would be barred from conducting water sports and face legal action. Kayani stressed, "If the entire Khanpur Dam is closed, where will the tourists go? This will lead to a complete halt in tourism activities, resulting in job losses for the local people."

The situation has sparked protests from tourists, who have travelled long distances to enjoy the dam's recreational activities, only to find them abruptly shut down. Visitors have called the closure an injustice, urging the administration to reconsider and allow water sports to continue.

Hanif lamented that the ongoing dispute between WAPDA and TMA Khanpur is severely harming his association. He explained that the land on the banks of Khanpur Dam is owned by the Dam Administration, which has explicitly instructed them, via a formal letter, to refrain from paying taxes and duties to TMA Khanpur, and instead, to pay taxes to WAPDA. Hanif described the situation as bizarre, finding himself caught between two government entities. He warned that TMA Khanpur's decision to close the tourist spot would not only cause inconvenience for the visitors but also result in unemployment for hundreds of families, even though millions of rupees in taxes have already been paid.

Additionally, tourists have been voicing their complaints about the lack of facilities at the dam. Hanif expressed his helplessness, questioning what more they could do and where they should turn, as neither the deputy commissioner nor the GM of WAPDA has been able to resolve the issue.

When contacted, management revealed that the assistant commissioner of Khanpur and the tehsil municipal officer, accompanied by police, have taken drastic measures at Khanpur Dam regarding the tax issue but were stopped from seizing boats and taking possession of parasailing equipment.

Given the gravity of the situation, officials from the Boat Association have been summoned to the administration's office for negotiations.

Locals pointed out that while private companies like Walls Ice Cream have installed benches and dustbins at Khanpur Dam to facilitate tourists, TMA Khanpur has been collecting taxes from jetty owners for services like boating, parasailing, and parking, but has failed to provide any amenities. Instead, private companies have had to step in to offer these facilities.

Negotiations between the Boats Association and the administration are underway, with Hanif expressing cautious optimism for a resolution.

In response to the ban imposed by the AC and TMO, the in-charge of the Khanpur Dam Project has taken legal action against TMA Khanpur. WAPDA alleges that TMA Khanpur collected illegal taxes from the dam and its adjacent land, amounting to Rs11.4 million from 2021 to 2024.

The Consumer Court in Haripur has ordered TMA Khanpur to cease tax collection from Khanpur Dam and its adjacent land. The court has also summoned TMO, TOR, and the head of the tax branch to present all records from 2021 to 2024 by August 30, 2024.