PESHAWAR: The dispute between the federal government and local traders and residents over federal taxes enforced in Malakand Division since July 1 remains unresolved, with a senior official claiming the government has finalised its position, sources reported.
Action against non-custom-paid vehicles could come in the next phase.
According to the official, the decision has been taken and there is little chance of extra leniency on tax enforcement in the division. He said action against non-custom-paid vehicles could follow in the next phase, by category, though details and a schedule have not been independently confirmed.
Banking sources said tax is also being deducted from profits on savings accounts after a three-month period, with deductions of up to 20% already made in some accounts. Official figures for total collections have yet to be confirmed.
Traders and political and social leaders had announced shutter-down strikes, rallies and road blockades, but postponed them indefinitely after emergency and governor's rule were imposed in the province. Unease in the region persists.
Local traders say years of insecurity, terrorism, military operations, earthquakes and floods have already strained the region's economy. They argue additional taxes could further hurt businesses, jobs and purchasing power, and call for special measures to promote trade and investment instead.