The admin of Khyber Pakhtunkhwa (KP) has made the decision to reverse the decision. To raise the tax on tobacco that was stated in the provincial budget.
Within the Khyber Pakhtunkhwa Assembly. The provincial government introduced a revised version of the Finance Bill with the intention of lowering the tax percentage.
Up-to Rs 50 per kilograms Tax on Tobacco
Tobacco was initially subject to a tax of up to Rs 50 per kilogramme. Which was administered by the province government.
In the revised version of the Finance Bill. It was suggested that the tax on Virginia tobacco be reduced to Rs 25 per kilogram.
It has also been suggested that the tax on white patta tobacco be reduced. From Rs 30 per kilogram to Rs 15 per kilogram.
In addition, the government of the Pakhtunkhwa Assembly. Made the decision to keep the current tax rate of Rs 7.50 per kilogramme on Naswar.
An additional proposal included in the revised financial bill. Is to raise the tax on tobacco by ten percent on an annual basis.
Protection of the Rights of Child
In the past, the Society for the Protection of the Rights of the Child (SPARC) and a number of other organizations have made a request to the Finance Ministry of Pakistan to raise the tax rate on tobacco products, particularly cigarettes.
During a briefing session with journalists, the organization mentioned that they have recommended to raise the taxation of tobacco by at least 26 percent in the 2019 budget submitted by the federal government.
Over 31.9 million adults aged 15 and older are identified as current tobacco users in Pakistan, which is nearly 19.7% of the adult population.
This presents a big challenge for Pakistan, which is facing a significant challenge with widespread tobacco consumption.
In addition to claiming the lives of over 160,000 people yearly, smoking-related ailments account for a sizeable 1.6% of the nation’s gross domestic product each year.
Nevertheless, for the fiscal year 2022-23, cigarette taxes only covered 16% of these expenses, which is a decrease from the 19.5% tax that was collected in 2019.
To read our blog on “Tobacco farmers lash out at government’s unfair policies,” click here
