PESHAWAR
Blue Veins and the Provincial Alliance for Sustainable Tobacco Control on Wednesday commend the Khyber Pakhtunkhwa (KP) Government for its landmark decision to increase the local tobacco tax (cess) by 400 per cent. This substantial increase is projected to generate over PKR 2 billion ($7.2 million) annually, which will be dedicated to enhancing health facilities across KP. This move marks the first increase in the provincial Tobacco Cess since 1996. The KP Government has also introduced a ground-breaking provincial excise duty on tobacco through the enactment of the “Khyber Pakhtunkhwa Provincial Excise Duty Tobacco Act 2024.” For the first time, this tax will be levied on tobacco companies at the rate of Rs 50 per kilogram. An important aspect of this new legislation is the mandatory registration of Green Leaf Threshing (GLT) units, which will significantly contribute to the establishment of a comprehensive track-and-trace system in KP.
