KP cuts Infrastructure Development Cess from 2% to 0.75%

The Khyber Pakhtunkhwa government has reduced the provincial Infrastructure Development Cess (IDC) from 2% to 0.75%, accepting a long-standing demand of the business community ahead of the provincial budget for FY2026-27.

As per reports, the decision was announced by Adviser to the Chief Minister on Finance Muzammil Aslam during a high-level consultative meeting on the upcoming budget, attended by representatives of chambers of commerce, business leaders and government officials from across the province.

Business representatives have repeatedly called for a reduction in the levy, arguing that it increases the cost of doing business and affects the competitiveness of local industries.

Participants in the meeting included Khyber Chamber of Commerce and Industry President Haji Muhammad Yousuf Afridi, Group Leader Syed Jawad Hussain Kazmi, Senior Vice President Wajid Ali Shinwari, Hazrat Ali Shinwari, Secretary Ali Faisal, Malakand Chamber President Inam Khan, Kohat Chamber President Haji Rashid Ahmed Paracha, and Women Chamber of Commerce Peshawar President Qurtul Ain.

Senior government officials present at the session included Additional Secretary Industries Muhammad Ishaq, ADG Revenue Excise and Taxation Salahuddin, Additional Secretary Planning and Development Muhammad Tawfiq, and Director Excise and Taxation Syedul Amin.

Representatives of various chambers of commerce and other senior officials also attended the meeting, where budget proposals and business-sector concerns were discussed ahead of the provincial budget announcement.