Khyber Pakhtunkhwa (KP) Finance Minister Aftab Alam unveiled the provincial budget for the fiscal year 2024-25, amounting to a total outlay of Rs1.6 trillion.
In a special cabinet meeting chaired by KP Chief Minister Ali Amin Gandapur, the budget for the upcoming fiscal year, along with the Annual Development Program and the Finance Bill, was approved.
The assembly session commenced with a delay of two hours due to a lack of quorum, with KP Chief Minister Ali Amin Gandapur also in attendance.
Commencing his address, Finance Minister Aftab Alam highlighted the PTI-led provincial government’s dedicated efforts towards the development of the province, underscoring education as a fundamental right and a top governmental priority.
Alam stressed the significance of investing in children’s futures, citing the establishment of numerous new schools and upgrades to existing ones. He noted the recruitment of additional teachers to enhance education standards.
Regarding healthcare, Alam mentioned the implementation of the Sehat Card scheme, providing free treatment to the public, along with the upgrading of 76 hospitals to deliver improved healthcare services.
Acknowledging peace and security as pivotal issues, the minister highlighted steps taken to address them, including the enforcement of the Police Act to ensure the autonomy and professionalism of KP Police.
Alam revealed that although the government has augmented its own revenue in recent years, the federal government still owes the province Rs1800 billion, which remains unreleased.
Speaking about the budget for 2024-25, the KP minister indicated that it was crafted in consultation with the business community, with a focus on enhancing revenue through taxation rather than relying solely on federal funds.
Proposed measures included the introduction of a fixed sales tax on marriage halls, alongside reductions in commercial property tax from 16% to 10%, and the property tax on industrial units from Rs2.5 per square foot to Rs10,000 per kanal. Additionally, the tax on land transfer would be reduced from 6.5% to 3.5%.
Alam emphasized tax relief for the public on land transfer and proposed measures to facilitate the purchase and sale of stamp papers.
He highlighted the significant contribution of KP to the country’s tobacco production and outlined plans to increase revenue from this sector, with a target set to collect Rs93.50 billion under the revenue mobilization plan.
Major points of the budget included a reduction in the tax rate on hotels to 6%, and the reduction of taxes on private hospitals, medical stores, and medical professionals from 16% to 5%.
