Governor KP demands PM to withdraw federal taxes in merged districts, PATA

PESHAWAR, (APP - UrduPoint / Pakistan Point News - 23rd Jul, 2026) Governor Khyber Pakhtunkhwa Faisal Karim Kundi has demanded Prime Minister Muhammad Shehbaz Sharif to abolish Federal taxes in the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), following the provincial government's recent decision to withdraw provincial taxes from these regions.

In a letter addressed to the prime minister, the governor said the merged districts and PATA had been granted a special tax-exempt status under the constitutional framework and commitments made during the merger process in view of their unique historical, economic and security circumstances.

He said that the KP government had recently abolished provincial taxes in the merged districts and PATA to ease the financial burden on residents still recovering from decades of conflict, displacement and underdevelopment.

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However, he said, the continuation of federal taxes had reduced the impact of that relief.

The Governor requested the federal government to restore and extend tax exemptions for the merged districts and PATA, constitute a joint federal-provincial committee to assess the fiscal and economic conditions of the areas before introducing further taxation, and place the matter before the Council of Common Interests (CCI) or another appropriate forum for an early resolution.

He said a coordinated federal and provincial tax policy would help strengthen public confidence, support economic recovery and advance the socio-economic integration of the merged districts and PATA.

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