The government's recent decision to bring non-customs paid (NCP) vehicles into the tax net has triggered a wave of controversy in Malakand Division and the merged districts of Swat.
NCP vehicles have been operating tax-free in the division including Swat Valley since 1997, with over 100,000 of these vehicles serving as both private and public transport.
The government's proposal aims to increase revenue collection but it has raised concerns among the local populace.
Many residents worry that imposing taxes on these vehicles could lead to a loss of employment opportunities.
SAMAA spoke to people in Malakand division, Abdullah a driver said, "I borrowed from someone and bought this non-customs paid car and earn sustenance for my children with it. If the government does not feel sorry for an old man like me, who else will?"
The presence of NCP vehicles in the division led to the setting up local industry of buying and selling vehicles—with more than 1,000 shops and over 6,000 businesses involved.
Now this industry provides livelihoods to a substantial portion of the population, and they remain adamant about preserving this tax-free status.
Akbar Khan, the President of the Bargain Association said, "We have nothing to do with the amnesty scheme; it is a tax-free zone. As long as it is a tax-free zone, we will, in any case, resist the end of this facility and taxation."
NCP from Afghanistan
NCP vehicles are primarily brought from Afghanistan and are 50 to 70 percent cheaper than their counterparts available in the general market due to the absence of customs duties.
The administration, in response to the growing concerns, has reassured the public that no policy will be made without ‘proper consultation’.
Saqib Raza Aslam, the Commissioner of Malakand Division, emphasized, "This issue is not just confined to Malakand but is also relevant to Fatawar, Gilgit-Baltistan. No action is being taken at this time, and any policy that is formed will consider the wishes of the people and be developed according to their intentions."
Political parties and business organizations are showing resistance to this move.
