PESHAWAR – June 2025: Steel Mills Association Rejects 10% Manufacturing Tax
Leaders of the FATA Steel Mills Owners’ Association have strongly condemned the federal government’s recent decision to impose a 10% tax on manufacturing units operating in the merged tribal districts. Speaking at a news conference at the Peshawar Press Club, Association Chairman Wajid Afridi called the tax ‘a betrayal of the promises made at the time of the merger.’
Government Commitments Ignored
During the merger of the Federally Administered Tribal Areas (FATA) with Khyber Pakhtunkhwa, the government had pledged to exempt industries in the region from federal taxes until at least 2028. This commitment was also recorded in the proceedings of the National Assembly. However, association members stated that the new tax measure contradicts those assurances.
Industries Already in Crisis
The association’s representatives expressed deep concern that the new tax would exacerbate the fragile industrial environment of the region. Many businesses are already struggling due to insufficient infrastructure, security challenges, and a lack of investment incentives. They emphasized that such a fiscal burden could force several units to shut down.
Unmet Development Promises
In addition to the tax grievance, the steel mill owners also criticized the federal and provincial governments for not delivering on development commitments made at the time of the merger. These included the creation of industrial zones, road infrastructure upgrades, and utility provisions—all of which remain largely unfulfilled.
Warning of Protest Movement
The association warned that if the federal government fails to withdraw the tax, they would be compelled to launch a protest campaign. They called on relevant authorities to reconsider the policy and prioritize economic support for struggling industries in the merged districts.
The steel mills association reiterated that their demand is not only based on economic viability but also on constitutional commitments made during a sensitive transitional period. ‘It’s time the government stands by its word and supports industrial growth rather than suffocating it,’ said Afridi.
