TODAY’S PAPER | July 18, 2026 | EPAPER

K-P scraps Malakand services sales tax

Grand Jirga in Peshawar vows joint struggle if Centre does not roll back taxes in merged districts


Ahtesham Bashir July 18, 2026 2 min read

PESHAWAR:

The Khyber-Pakhtunkhwa government has decided to withdraw the Sales Tax on Services in Malakand Division, while all major political parties have agreed to launch a joint struggle if the federal government does not withdraw taxes from the merged tribal districts and Malakand Division.

A high-level Grand Jirga was convened at the Chief Minister's House in Peshawar under the provincial government's initiative to oppose the imposition of federal taxes in the merged districts and Malakand Division. The Jirga was attended by K-P Chief Minister Muhammad Sohail Afridi, Governor Faisal Karim Kundi, provincial cabinet members, senators from the province, provincial presidents and general secretaries of political parties, elected public representatives, parliamentarians from the merged districts and Malakand Division, and presidents of traders' organisations from these areas.

Participants deliberated on various proposals and recommendations against the enforcement of federal taxes. All relevant stakeholders were given the opportunity to present their views and suggestions.

Addressing the Jirga, Chief Minister Afridi said the purpose of the Grand Jirga was to evolve a consensus line of action and a unified strategy against the imposition of taxes in the merged districts and Malakand Division.

He stated that the K-P government is not levying any taxes in the merged districts and has also decided to withdraw the Sales Tax on Services in Malakand Division. The provincial government's decision to roll back provincial taxes was taken purely in the public interest, he added.

"We are public representatives. The people are our strength and priority, therefore the focus of all our decisions remains public welfare," the Chief Minister said.

Thanking all political parties and leaders for standing with the province on its issues, Afridi noted that the political culture in K-P is changing, with all parties uniting on public matters.

He announced the formation of a high-level delegation to engage with the federal government. He made it clear that if the federal government does not reverse its decision, all political forces of the province will stand shoulder to shoulder with the people of K-P and wage a joint struggle at every level.

"If need be, we will hold protests, and if required, we will go to Islamabad to raise our voice for the rights of the province's people," he declared.

The Jirga also discussed the law and order situation alongside the tax issue. The Chief Minister revealed that a provincial action plan against terrorism has been prepared, saying that its implementation could restore peace within four months.

He announced that a separate Jirga on peace and security would be convened soon to deliberate in detail on measures for establishing peace, the responsibilities of relevant institutions, and required actions.

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