Erstwhile FATA’s steel industry rejects new tax, demands withdrawal

PESHAWAR
The Steel Industrial Association from Khyber tribal district on Monday condemned the imposition of a 10 percent tax on FATA’s steel mills and other industries in the federal budget for 2025–26.
Addressing a press conference at the Peshawar Press Club (PPC), members of the association led by Wajid Afridi stated that a committee led by Sartaj Aziz had assured at the time of the tribal belt merger with KP that no tax would be levied in FATA from 2018 to 2028, a promise later endorsed by the National Assembly and on record.
However, they criticized the PML-N government for ignoring these assurances and imposing the tax, which they say will further cripple the fragile industrial sector in the region.
Malik Majeed, Raheel Afridi, Tanveer Ahmed, and Shahid Iqbal of the FATA Steel Mills Association highlighted that the government had failed to establish infrastructure, industrial zones, or provide any support to the area.
Currently, only 20 percent of industries remain operational in ex-FATA, they said, and instead of offering relief or development packages, the government has levied harsh taxes.
The speakers pointed to the dual challenges faced by the merged districts: ongoing terrorism and rampant unemployment, questioning how industries could survive under such conditions while being taxed heavily.
They warned that new tax on erstwhile Fata could lead to the closure of the remaining industries, worsening the economic crisis.
Rejecting the 10 percent tax outright, the association announced plans to take their protest to Islamabad for negotiations with the government.
If their demands were not met, they intend to launch a widespread protest movement supported by business communities from across former FATA’s tribal districts.
The association demanded the immediate withdrawal of the tax and urged the government to fulfill its merger promises by ensuring development rights, promoting peace and order, and collaborating with the business sector to combat terrorism and revive the region’s economy.