PESHAWAR: The Malakand Chamber of Commerce and Industry has rejected the proposed 12 percent tax in the Finance Bill 2026–27 and the imposition of fixed taxes on traders in the merged districts, terming the measures “unjust and unacceptable”.
The chamber President Inamullah said that imposing taxes similar to those in Karachi and Lahore on the underdeveloped and security-affected merged districts amounted to “injustice” with the business community.
He stressed that the region’s fragile economic conditions and law and order situation were not conducive to such tax measures.Inamullah announced that traders’ bodies across the merged districts would jointly formulate a future course of action today, including the possibility of shutter-down strikes and protest demonstrations.
Meanwhile, sources said that the federal government has approved the Finance Bill 2026–27 with the support of its coalition partners, without incorporating opposition amendments. The new tax measures are set to come into effect from July 1, 2026.
The budget reportedly includes the withdrawal of tax exemptions previously granted to the merged tribal districts, an increase in sales tax from 10 to 12 percent on industrial units, and the imposition of a fixed tax of Rs25,000 on traders from Karachi to Chitral.
It also introduces taxes on utility bills, while steps are being taken to extend taxation to NCP vehicle registration and customs-related matters.A meeting of traders’ associations and chambers of commerce from the merged districts has been convened in Malakand to devise a joint protest strategy.
Inamullah said a strong protest movement would be launched against the new taxation measures.He vowed to mobilize traders across all district headquarters in the merged areas for demonstrations and shutdowns in the coming days.
