PESHAWAR: The Mineral Association of Khyber Pakhtunkhwa has voiced strong opposition to the recent increase in taxes on the mineral sector, calling for the government to reconsider and reverse the decision immediately.
During a media briefing on Sunday, Association President Dr. Afsar, accompanied by General Secretary Syed Abdul Rauf Khan and other officials, criticized the new legislation that introduced the tax hike, describing it as unacceptable and demanding its immediate withdrawal.
Dr. Afsar urged the government to establish a committee that includes officials, mining representatives, and other stakeholders to thoroughly review the tax changes. He emphasized that taxpayers have the right to know how their contributions are being utilized.
The association leaders highlighted that despite the collection of a 20 percent royalty fund, the business community in the mineral sector has not benefited from it. They noted that a significant number of marble factories (70 percent) and mineral businesses (90 percent) in the province have shut down. They argued that adding to the burden on stakeholders would endanger the national economy and the mineral sector. They lamented that the mineral department is often seen as a lucrative venture, but in reality, 95 percent of businesses in the sector have struggled, causing damage to the department.
The officials pointed out that despite receiving allotment letters, stakeholders have had to negotiate with landowners for two to three years to secure access to resources. They criticized the formation of a committee for the minerals sector comprised of non-technical individuals with little understanding of the industry. They questioned how laborers, who depend on stakeholders for income, could be expected to pay taxes without sufficient earnings. They recalled that a similar tax was imposed by the former PTI-led provincial government, leading to protests that ultimately failed to repeal the tax.
The association warned of potential street protests if the recent tax increase is not rescinded. They contrasted the support for the business community in other provinces with the adverse conditions in Khyber Pakhtunkhwa.
They also revealed that the government had received Rs 3.8 billion in World Bank funds for the development of the mineral sector in 2013, but the funds were diverted to other official uses rather than sector development. They urged the government to revoke the tax increase and address sector issues in consultation with stakeholders to avoid further protests.
