KP businessmen warn of protest against tax collection on transport, other services

PESHAWAR: The business community of Khyber Pakhtunkhwa has categorically rejected the collection of tax on transport and other services by the KP Revenue Authority (KPRA), warning of launching an agitation campaign if the "unfair and unjust" additional taxes were not abolished immediately.

The matter was discussed during a meeting chaired by Sarhad Chamber of Commerce and Industry (SCCI) President Sherbaz Bilour on Tuesday. SCCI Senior Vice President Engineer Manzoor Elahi, former FPCCI president Ghazanfar Bilour, SCCI former presidents Riaz Arshad, Malik Niaz Ahmad, Zulfiqar Ali Khan, members of SCCI executive committee Zarak Khan, Ghulam Dastgir and Imran Khan were also present on the occasion.

Participants of the meeting opined that KPRA was only liable to collect provincial taxes whereas the manufacturer sector fell under the federal government.

Therefore, they said, the collection of up to 15pc tax from the business community was unconstitutional and illegal, adding that the move was also against the spirit of the 18th constitutional amendment.

The speakers said that the collection of transport tax was tantamount to closing the industry in KP, which would not only trigger unemployment in the province but also enhance the cost of production, ultimately affecting the poor masses.

The participants went on to say that the KP businessmen pay double transportation charges as compared to other parts of the country while facing major challenges owing to geographical disadvantage and distance from the seaport.

The meeting decided that a delegation of the business community will hold a meeting with the KP Finance Minister Taimoor Saleem Khan Jhagra to apprise him about their reservations and concerns regarding the imposition of transport tax by KPRA.

However, they reiterated that if the issue was unsolved, a phase-wise protest campaign would be launched under which billboards will be displayed on all main routes in the provincial capital, besides advertisement against transport tax being published in newspapers and strikes.

Last but not least, the business community will move court against the KPRA if all measures fail, they warned.