Khyber Pakhtunkhwa Government Expands Mineral Tax Net

The Khyber Pakhtunkhwa government has taken a significant step by broadening its tax net to encompass 54 different types of minerals. This move involves the implementation of a fixed tax rate ranging from Rs 30 to Rs 2,000 per ton, aimed at regulating the mining industry and increasing revenue for the province.

With the newly introduced tax structure, various minerals will be subject to specific tax rates. For example, black granite will be taxed at Rs 1,500 per ton, while colored granites will incur a tax of Rs 500 per ton. Additionally, minerals such as graphite, chalk, gypsum, red clay, China clay, marble, magnesite, phosphate, salt, cement-grade limestone, soapstone, silica, and sulfur will have designated tax rates ranging from Rs 30 to Rs 2,000 per ton. Tax collection is scheduled to begin on July 1, with the government anticipating a positive impact on revenue generation and growth within the mining sector.

To ensure effective tax collection and compliance, the provincial government plans to establish a mineral development authority dedicated to overseeing the mining industry. This strategic move is expected to streamline operations, boost revenue generation, and foster sustainable growth in the mining sector.

The expansion of the tax net to cover a wide range of minerals in Khyber Pakhtunkhwa signifies a proactive approach towards regulating the mining industry and enhancing economic development. By implementing fixed tax rates and establishing a mineral development authority, the government aims to not only increase revenue but also promote sustainable growth and benefit local communities. This initiative is poised to create new opportunities within the mining sector and contribute to the overall prosperity of the province.