Khyber Pakhtunkhwa reverses tobacco tax hike amid political pressure

PESHAWAR: The Khyber Pakhtunkhwa government has withdrawn its recent increase in tobacco taxes, responding to political pressure while keeping the tax rate on snuff unchanged.

Originally, the provincial budget had set new taxes on tobacco, including a Rs 50 per kg tax on Virginia tobacco and Rs 30 per kg on other types. However, facing significant political backlash, the government has decided to roll back the tax hike entirely.

KP govt hikes taxes on tobacco, property and traffic violations

Despite this reversal, the tax rates on snuff will remain as previously established.

The Provincial Finance Amendment Bill will be presented in the Provincial Assembly today to formalise the change. Key figures including Asad Qaiser and Atif Khan were instrumental in urging the government to reconsider the tobacco tax increase. – INP