KP Cabinet Sales Tax Exemption Malakand, New Relief Approved for Local Businesses

The KP cabinet sales tax exemption Malakand decision has brought welcome news for traders and industrial units in the region. On Wednesday, the Khyber Pakhtunkhwa cabinet gave the green light to two draft notifications that will ease the tax burden on local service providers and industries.

The first notification frees local service providers from paying sales tax on their services. The second one removes the requirement for industrial units in Malakand and the former tribal areas to withhold sales tax on behalf of the government.

Chief Minister Sohail Afridi shared these updates after the cabinet meeting. He said the province has set a revenue collection goal of Rs180 billion for this fiscal year. He sounded confident that the target would be met through stronger efforts to raise revenue.

The CM also thanked cabinet members for staying connected with people in their constituencies. He asked them to keep visiting their areas often. According to him, real problems on the ground can only be understood by meeting people directly, not by working from behind a desk.

He added that such visits help the government spot gaps in public services and fix them faster.

Afridi also spoke about honesty in governance. He said that standing firm on truth, merit and transparency often creates enemies. He claimed that a massive Rs5.3 trillion corruption case involving public money has gone largely unspoken, while those who challenge powerful institutions often face backlash instead.

Concerns Over Imran Khan’s Health

The cabinet meeting also touched on the health of former Prime Minister Imran Khan, who remains in custody. Afridi expressed serious concern and blamed both the federal government and jail officials for not properly addressing the matter.

وزیراعلیٰ خیبر پختونخوا محمد سہیل آفریدی نے کابینہ اجلاس میں محکمہ خزانہ کی کارکردگی کو سراہتے ہوئے خراج تحسین پیش کیا کہ 129 ارب روپے کے ہدف کے مقابلے میں 150 ارب روپے ریونیو وصول کیا گیا، جبکہ رواں مالی سال کے لیے 180 ارب روپے کا ہدف مقرر کیا گیا ہے۔ pic.twitter.com/EOdaVfsS3f

— Government of KP (@GovernmentKP) August 12, 2026

He said Imran was in excellent health before his arrest, calling it a forced removal. He also said people no longer trust official statements claiming Imran is doing fine. Afridi demanded that Imran be given access to his own doctors, family, lawyers and close friends, calling this a basic constitutional right.

New Steps for Education and Youth

Information Minister Shafi Jan briefed reporters on other major decisions taken during the meeting. The Ehsaas Naujawan Programme, which supports youth entrepreneurship and self-employment, will now receive Rs5 billion instead of Rs3 billion. This boost comes after a rising number of applications from young people across the province.

The cabinet also approved Rs188.8 million as a one-time grant for model schools located in the merged tribal districts. Separately, Langlands School and College in Chitral will receive Rs60 million in support.

To help reduce the number of children who are out of school, different departments will now work together under a new agreement.

A revised textbook plan was also approved. Starting from the 2027-28 academic year, students from kindergarten to grade five will get combined “jacketed” textbooks, meaning several subjects will be bound under one cover to reduce bag weight. The same idea will later extend to grades six through eight. On top of this, students in grades nine to twelve will now receive completely free textbooks.

Healthcare and Compensation Announcements

The cabinet approved Rs66.6 million for the treatment of 21 patients who needed financial help. A new CEO was also appointed for the Khyber Pakhtunkhwa Transmission and Grid System Company.

In a major relief step, families affected by the Bajaur militant attack will now receive higher compensation. Families of those who lost their lives will get Rs10 million each, while those with serious or minor injuries will receive Rs2.5 million.

The province also raised its general compensation policy. Families of victims killed in similar attacks will now get Rs5 million instead of Rs1 million, and compensation for major injuries has increased to Rs1.5 million.