Pakistan

KP assembly lowers tobacco tax rate in amended finance bill

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Staff Reporter

2 years ago

PESHAWAR: The Khyber Pakhtunkhwa (KP) Assembly approved an amended Finance Bill on Tuesday to reverse the increase in tobacco tax that was introduced in the provincial budget for 2024-25, according to ARY News.

The provincial government presented the amended Finance Bill, which reduced the tobacco tax rate. Initially set at Rs 50 per kilogram, the tobacco tax has been lowered to Rs 25 per kilogram.

Additionally, the tax on white patta tobacco has been reduced from Rs 30 to Rs 15 per kilogram. The existing tax on Naswar remains at Rs 7.50 per kilogram.

Previously, organizations such as the Society for the Protection of the Rights of the Child (SPARC) had urged the Finance Ministry to raise taxes on tobacco products, particularly cigarettes.

They suggested a 26% increase in tobacco taxation in the upcoming federal budget.

Pakistan faces a significant challenge with high tobacco consumption, with over 31.9 million adults aged 15 and above using tobacco, accounting for nearly 19.7% of the adult population. Smoking-related diseases result in over 160,000 deaths annually, which amounts to about 1.6% of the country’s GDP.

In the previous year 2022-23, cigarette taxes covered only 16% of the related expenses, down from 19.5% in 2019.

Staff Reporter