KP Finance Minister Aftab Alam Unveils Rs1.6 Trillion Budget for 2024-25

PESHAWAR: Khyber Pakhtunkhwa (KP) Finance Minister Aftab Alam presented the provincial budget for the fiscal year 2024-25, totaling Rs1.6 trillion, on Friday.

The budget, along with the Annual Development Program and the Finance Bill, was approved in a special cabinet meeting led by KP Chief Minister Ali Amin Gandapur.

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 highlighted the PTI-led provincial government’s commitment to education, calling it a fundamental right. He outlined investments in the future of children, including the construction of thousands of new schools, upgrades to existing ones, and the hiring of new teachers to enhance education standards.

Alam also described the government’s healthcare improvements, such as the Sehat Card scheme for free treatment and the upgrading of 76 hospitals to enhance healthcare facilities.

Addressing security issues, Alam acknowledged ongoing peace and security challenges in the province. He mentioned that significant steps have been taken, including implementing the Police Act to make the KP Police more autonomous and professional.

Alam stated that despite the provincial government’s increased revenue, the federal government still owes KP Rs1800 billion. He explained that the 2024-25 budget was developed with input from the business community, focusing on boosting revenue through taxation rather than relying on federal funds.

Key budget proposals include:

• Introducing a fixed sales tax on marriage halls.
• 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 transfers from 6.5% to 3.5%.
• Providing a 3% tax relief on land transfers.
• Simplifying the purchase and sale of stamp papers.

Alam emphasized that 80% of the country’s tobacco is produced in KP, and the government aims to increase revenue from this sector, targeting Rs93.50 billion under the revenue mobilization plan.

Additional significant 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 revenue target of Rs93.5 billion under the Revenue Mobilization Plan.