KP cabinet okays tax relief for Malakand, ex-Fata

The Khyber Pakhtunkhwa cabinet has cleared two draft notifications that give sales tax relief in Malakand division and in the former tribal areas, according to Dawn. One measure exempts local service providers from sales tax on services, while the other relieves industrial units operating in those districts of the duty to withhold sales tax. Both decisions were taken at a meeting held on Wednesday.

In an official statement after the meeting, Chief Minister Sohail Afridi said the provincial government expects to reach its revenue goal of Rs180 billion this fiscal year through steady efforts to expand revenue collection. He also urged cabinet members to keep visiting their constituencies, saying that ground realities cannot be grasped from offices.

The cabinet also raised the Ehsaas Naujawan Programme allocation from Rs3bn to Rs5bn, citing sustained public demand and a growing number of applications. Starting with the 2027-28 academic year, a semester-wise jacketed textbook system will apply to grades KG to V, with grades VI to VIII covered at a later stage. Compensation for civilians harmed in targeted militant strikes in Bajaur was increased, with Rs10m going to each deceased person's heirs and Rs2.5m for those with major or minor injuries.