KP assembly introduces bill to reduce tobacco tax by 100%

The Khyber Pakhtunkhwa provincial assembly has introduced a finance amendment bill aimed at reducing tobacco taxes, 24NewsHD TV channel reported on Tuesday.  

The new draft bill proposes significant tax cuts on various types of tobacco, a move expected to have wide-ranging economic and social implications.

Under the proposed amendments, the tax on Virginia tobacco will be reduced the Provincial Tobacco Development Cess by 100 percent.

It means that the tax on Virginia tobacco will be reduced from 50 rupees to 25 rupees, and the tax on white-leaf tobacco will be lowered from 30 rupees to 15 rupees.

In the annual budget, excise duty on tobacco was imposed at 50 rupees.

According to the bill draft, the tax will be automatically increased by ten rupees annually on tobacco.

The finance amendment bill was presented by Provincial Law Minister Aftab Alam, who highlighted the need for these adjustments to support local farmers and the tobacco industry.

The reduction in taxes is expected to provide relief to tobacco growers and manufacturers, potentially boosting the regional economy.