After farmers' protests, the Khyber Pakhtunkhwa government has decided to reduce the Provincial Tobacco Development cess by 100 percent.
In the annual budget, development cess on virginal tobacco (Virginia (flue-cured, barley and dark-air-cured) was fixed at Rs50 and now tax is being reduced by Rs30 on other categories.
Now a tax of Rs25 per kg will be imposed on Virgina and Rs 15 per kg on other varieties.
The Finance Amendment Bill was presented in the Provincial Assembly on Tuesday.