The Khyber Pakhtunkhwa (KP) government has announced its decision to levy a new tax on tobacco in the form of provincial excise duty.
This move aims to generate additional revenue to be allocated to the health sector, according to KP Finance Adviser Muzzammil Aslam.
In a recent KP Revenue Department meeting chaired by Aslam, it was discussed that the revenue generated from the excise duty on tobacco would be utilized to bolster the healthcare system in the province. The meeting was attended by Provincial Excise Minister Khaleequr Rehman and other senior officials.
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As part of the government's efforts to increase revenue, an increment in tobacco development cess has also been proposed alongside the imposition of excise duty.
Muzzammil Aslam emphasized the importance of utilizing the generated revenue for the betterment of the health sector. He revealed that the bill to impose provincial excise duty on tobacco would be submitted for approval in the near future.
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He said that after the 18th Amendment, tobacco is a provincial subject, adding that about 80% of the country's tobacco is produced in Khyber Pakhtunkhwa.
Furthermore, it was disclosed during the briefing that the federal government is estimated to receive Rs250 billion in income from federal duty on tobacco this year. However, rather than being given to Khyber Pakhtunkhwa, it was distributed among the provinces.
