DLP Report
PESHAWAR
Officials from the Frontier Mine Owners Association in Khyber Pakhtunkhwa have strongly condemned the taxation on minerals by local government representatives in various tehsils and districts, calling it “blatant hooliganism.”
According to the mine owners, they are already complying with the mineral laws by paying all taxes as required, and they rejected any additional taxes imposed by other institutions.
In a press conference held at the Peshawar Press Club (PPC), Sherbandi Khan Marwat, President of the Frontier Mine Owners Association, Uzair Tanoli, General Secretary, and Bilal Khan Najaf Khan raised concerns over the illegal collection of taxes.
They accused the Town Municipal Administration (TMA) and local government officials of extorting taxes on minerals with the help of concerned officers, despite the taxes being ruled unconstitutional by the Supreme Court.
The mine owners pointed out that in 2016, the provincial government abolished such taxes, but in 2022, they were reintroduced, only to be again invalidated by the Supreme Court. However, taxes are now being collected under various names.
The officials criticized the TMA and other institutions for failing to provide any real services or facilities to the miners while still collecting service taxes from mineral-laden vehicles. They emphasized that mine owners have never used TMA routes or services, yet the local administrations continue to violate the court’s decision.
The protestors also raised concerns about the provincial government’s actions, claiming that instead of addressing the issues facing the mining sector, it is creating additional problems.
They reminded the government that, according to local government rules, taxes cannot be levied on raw minerals, and that taxes should be imposed on industrial estates or local traders, not the mining business.
Furthermore, the Mine and Mineral Association contributes around Rs 380 billion annually to the construction sector, while the provincial government collects approximately Rs 20 billion in taxes from the mining sector. Despite this contribution, raw materials like crushed sand continue to flow into the construction sector without proper support for the mining industry.
The association has called on the Secretary Mines and Minerals, Motahar Zeb, to be immediately replaced with a more dutiful and honest officer who can support the development of the province. They also urged the Secretary Local Government and other high-ranking officials to halt the collection of illegal taxes and to create employment opportunities within the mining sector.
The association warned that if these issues are not addressed, 550,000 workers and mine owners would be forced to go on strike to protest against the illegal tax collection and demand fair treatment.
