Investor Presentaiton

FINANCING SUSTAINABLE TOURISM IN KHYBER PAKHTUNKHWA Challenge Constraints in imposing Tourism Cess Objective. These proceeds could be spent on sustainable tourism development in areas where the revenue is generated. This would however require legislative action and might be difficult to implement given the centralized structure of finance and budgetary processes Purview Provincial Government (Department of Finance) Time Frame Long-term Viability Low Solution/Intervention. Apportionment of existing sales taxes or excise tax on hotels as tourism Cess Challenge Tax compliance and exemptions Objective. Removal of such tax exemptions would reduce distortions in investment decisions, geographical disparity and raise considerable revenue which could be spent on tourism infrastructure development and related services. Purview Provincial Government Time Frame Medium-Term Viability High Solution/Intervention- Removal of tax exemptions and harmonization of tax rates. 33

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