Description / Scope of Work
The Excise, Taxation and Narcotics Control Department, Government of Khyber Pakhtunkhwa invites bids through open ascending price auction for the outsourcing of Tobacco Development Cess collection rights for the financial year 2026-27. The successful contractor will have the exclusive right and responsibility to collect tobacco development cess on the transportation of all categories of tobacco and tobacco products within the territorial jurisdiction of Khyber Pakhtunkhwa province in accordance with Section 11 of the KP Finance Act 1996 and the Recovery of Tobacco Development Cess Rules 2004. The scope includes collection from all cigarette manufacturing, re-drying, processing companies, and entities dealing in tobacco business, with specific exclusions for tobacco recovered from listed manufacturers up to their Pakistan Tobacco Board purchase targets and tobacco originally cultivated outside KPK province. The applicable cess rates are PKR 30.25 per kilogram for Virginia flue-cured tobacco, PKR 18.15 per kilogram for White Patta and Rustica tobacco, and PKR 7.50 per kilogram or 3% of invoiced value for snuff/naswar, whichever is higher.
All prospective bidders must meet eligibility criteria specified in Section II of the Standard Bidding Document and are required to deposit refundable bid security of PKR 10,000,000 in the form of bank draft or CDR in favor of the Director General. Bidders must be pre-qualified and eligible as per the Khyber Pakhtunkhwa Public Procurement Regulatory Authority Act 2012 and KPPRA Rules 2014. The contractor will provide all logistics, personnel, and infrastructure for collection at factory entry points and designated check-posts, with no government payment or compensation offered—the contractor's sole revenue source being legally collected cess from non-exempted tobacco transportation at statutory rates.
The open ascending price auction will be held on July 24, 2026, at 2:00 PM PST at the Office of the Director General, Excise, Taxation and Narcotics Control Department, Khyber Pakhtunkhwa, Plot No. 13, Sector 3-A, Phase-5, Hayatabad, Peshawar. The contract period runs from August 1, 2026 through June 30, 2027. Complete Standard Bidding Documents can be downloaded free of cost from the KPPRA website at http://www.kppra.gov.pk/kppra/ and the department website at http://www.kpexcise.gove.pk/, or obtained in hard copy from the Director Revenue office during working hours after July 10, 2026 until closing date. For further information or clarification, bidders may contact the Director General's office at telephone number 091-9217645 during regular business hours.