‘Illegal’ taxes: Marble factory owners, transporters strike in K-P, FATA

Senators say Tax Regulation Act does not extend to tribal areas.

SHABQADAR: Marble factory owners and truck drivers in the Federally Administered Tribal Areas (Fata) and Khyber-Pakhtunkhwa have decided to observe a strike in protest over what they said was an ‘illegal’ increase in taxes.

The decision was taken in a grand jirga in Subhan Khawar earlier this week. As a result, more than 1,000 factories in Mohmand and Khyber agencies, and Peshawar and Charsadda districts along with other areas have stopped production.

Taxes on trucks transporting marble were increased from Rs1,000 to Rs2,000 per truck and from Rs1,600 to Rs3,500 for two trucks.

Senators from Fata, Hilal Rehman and Hidayatullah alleged the taxes were illegal, saying the Tax Regulation Act does not extend to tribal areas. They maintained that the political administration is imposing these taxes in violation of the Constitution, and added the issue would be taken up in the Senate.

Marble Association President Shakirullah said the taxes have been imposed without consulting associations representing factory owners and transporters. He added that the provincial government had abolished all such taxes in 2007.



Shakirullah said the increased taxes were being charged by the newly appointed political agent of Mohmand Agency, Ambar Ali.

According to him, over 400 trucks supply marble from Mohmand Agency to more than 1,000 factories every day. The marble is then polished and exported. “The strike will affect around 50,000 labourers working in these factories,” he said.

A leader of the Truck Drivers Association Sawal Khan said that currently around 200 loaded trucks have been stopped in Mohmand and the load was damaging the vehicles. “We are bearing a loss of Rs3,000 every day, but it’s the labourers who are suffering the most,” he added.

A representative of Subhan Khawar Marble Association, Janullah Khan warned of taking the matter up with the Supreme Court.

Published in The Express Tribune, December 22^nd, 2012.