KP budget of Rs1.6trn for FY25 unveiled

KP budget of Rs1.6trn for FY25 unveiled

KP budget of Rs1.6trn for FY25 unveiled

KP budget of Rs1.6trn for FY25 unveiled

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PESHAWAR: Khyber Pakhtunkhwa (KP) Finance Minister Aftab Alam unveiled the provincial budget for the fiscal year 2024-25, with a total outlay of Rs1.6 trillion on Friday.

A special cabinet meeting chaired by KP Chief Minister Ali Amin Gandapur approved the budget for 2024-25, along with the Annual Development Program and the Finance Bill.

The assembly session began two hours late due to a lack of quorum, with Chief Minister Gandapur in attendance.

In his speech, Finance Minister Aftab Alam emphasized that the PTI-led provincial government has prioritized education, describing it as a fundamental right.

He highlighted investments in children’s futures, noting the construction of thousands of new schools, the upgrade of existing ones, and the hiring of new teachers to improve education standards.

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Alam also detailed the government’s efforts to enhance healthcare, including the provision of the Sehat Card scheme for free treatment and the upgrade of 76 hospitals to improve healthcare facilities.

Addressing security concerns, Alam acknowledged that peace and security remain significant issues in the province, and he noted that concrete steps have been taken to address these, including the enforcement of the Police Act, which has made the KP Police autonomous and professional.

Alam stated that while the provincial government has increased its revenue in recent years, the federal government still owes KP Rs1800 billion. He said the 2024-25 budget was prepared in consultation with the business community, focusing on increasing revenue through taxation rather than relying on federal funds.

Key budget proposals include:

  • Introducing a fixed sales tax on marriage halls.
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  • Reducing the commercial property tax from 16% to 10%.
  • Lowering the property tax on industrial units from Rs2.5 per square foot to Rs10,000 per kanal.
  • Reducing the tax on land transfer from 6.5% to 3.5%.
  • Providing a 3% tax relief on land transfer.
  • Simplifying the purchase and sale of stamp papers.
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Alam highlighted that 80% of the country’s tobacco is produced in KP, and the government aims to increase revenue from this sector, setting a target to collect Rs93.50 billion under the revenue mobilization plan.

Additional major points include:

  • Reducing the tax rate on hotels to 6%.
  • Cutting taxes on private hospitals, medical stores, and medical professionals from 16% to 5%.
  • Setting a target to collect Rs93.5 billion under the Revenue Mobilisation Plan.
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