PESHAWAR: The Khyber Pakhtunkhwa (KP) government has decided to reverse the increase in tobacco tax announced in the provincial budget, according to ARY News.
The provincial government presented an amended Finance Bill in the KP Assembly to reduce the tax rates. Originally, a tax of up to Rs 50 per kilogram was imposed on tobacco. The amended bill proposes lowering the tax to Rs 25 per kilogram for Virginia tobacco and reducing the tax on white patta tobacco from Rs 30 to Rs 15 per kilogram. The existing tax of Rs 7.50 per kilogram on Naswar will be maintained.
The amended finance bill also suggests an annual 10 percent increase in the tobacco tax.
Previously, the Society for the Protection of the Rights of the Child (SPARC) and other organizations had urged Pakistan’s Finance Ministry to increase taxes on tobacco products, especially cigarettes. In a briefing session with journalists, SPARC proposed a minimum 26 percent increase in tobacco taxation in the upcoming federal budget.
Pakistan faces a significant challenge with widespread tobacco use, with over 31.9 million adults (19.7% of the adult population) identified as current tobacco users. Smoking-related illnesses claim over 160,000 lives annually, costing the nation 1.6% of its GDP each year. In the fiscal year 2022-23, cigarette taxes covered only 16% of these expenses, down from 19.5% in 2019.
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