Will it give me wanted level?
It depends on where you are.
it's a powerplay thing. If you are, for example, working for Torval, every ship that is of non-allied power (like federation ships) will have the "Hostile" tag on them. If you are in Torval space, you can kill hostile ships and it counts as defense. But if you are in other power's teritory, it's an assault.
Hmmm. I am in my territory. Nanomam. I am friendly. If I see an enemy tagged ship. Let me blow it up I guess. Thank you.
You can be much more aggressive in the Beyond release, PPvPP is going to be virtually (or entirely) ignored by System Laws.
[Still doesn't make PP anything but a waste of electrons, but hey-ho]
You can shoot any target without getting any penalty if they have red writing.