PESHAWAR: The provincial government of Khyber Pakhtunkhwa has accepted the long-standing demand of the business community and announced to reduce the rate of the provincial Infrastructure Development Cess (IDC) from 2 percent to 0.75 percent.
This important announcement was made by the Advisor to Chief Minister of Khyber Pakhtunkhwa on Finance, Muzammil Aslam, in a high-level consultative meeting regarding the provincial budget 2026-27, which was attended by the presidents of chambers of commerce from across Khyber Pakhtunkhwa, business leaders and government officials.
Those who participated in the meeting include president Khyber Chamber of Commerce and Industries, Haji Muhammad Yousuf Afridi, Group Leader Syed Jawad Hussain Kazmi, Senior Vice President Wajid Ali Shinwari, Hazrat Ali Shinwari, Secretary Ali Faisal, President Malakand Chamber Inam Khan, President Kohat Chamber Haji Rashid Ahmed Paracha, President Women Chamber of Commerce (Peshawar) Qurtul Ain, Additional Secretary Industries Muhammad Ishaq, ADG Revenue Excise and Taxation Salahuddin, Additional Secretary Planning and Development Muhammad Tawfiq, Director Excise and Taxation Syedul Amin, representatives of various chambers and senior government officials in large numbers.
During the meeting, president Khyber Chamber, Haji Muhammad Yousuf Afridi and Group Leader Syed Jawad Hussain Kazmi presented in detail the issues and concerns faced by the business community regarding the provincial infrastructure development cess tax and professional tax.
They clarified that the current tax rate is putting additional financial burden on importers and exporters, which is having a negative impact on business activities and trade competition.
Khyber Chamber has vigorously highlighted this issue at several forums during the past one year, while several suggestions and recommendations have also been presented to the provincial government to make the business environment more conducive and remove obstacles to the promotion of investment and trade.
Keeping in view the recommendations of the Khyber Chamber and the concerns of the business community, Advisor on Finance Muzammil Aslam announced that the rate of Infrastructure Development Cess will be reduced from 2 percent to 0.75 percent in the upcoming provincial budget, while all legal and administrative procedures in this regard have been completed.
Copyright Business Recorder, 2026
Comments