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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 (TDC) collection rights for the financial year 2026-27, commencing July 1, 2026 and concluding June 30, 2027. The successful contractor will have sole responsibility to collect tobacco development cess on the transportation of all categories of tobacco and tobacco products within Khyber Pakhtunkhwa province in accordance with Section 11 of the KP Finance Act 1996 and the Recovery of Tobacco Development Cess Rules 2004. The cess rates are PKR 30.25 per kilogram for Virginia tobacco varieties, PKR 18.15 per kilogram for White Patta and Rustica tobacco types, and PKR 7.50 per kilogram or 3 percent of invoiced value for Snuff and Naswar, whichever is higher. The contractor must establish collection checkpoints at factory entry points and designated locations throughout the province and shall receive no government payment; revenue derives exclusively from legally collected cess amounts.
All prospective bidders must meet eligibility criteria specified in Section II of the Standard Bidding Documents and must deposit a refundable bid security of PKR 10,000,000 in the form of a bank draft or CDR in favor of the Director General. The auction will employ open ascending price methodology to ensure maximum transparency in price discovery and competitive bidding among all pre-qualified participants. Bidders may participate in person or through authorized representatives.
The open ascending price auction will be conducted on June 9, 2026 at 12:00 PM (Pakistan Standard Time) at the office of the Director General, Excise, Taxation and Narcotics Control Department, Khyber Pakhtunkhwa, located at Plot No. 13, Sector 3-A, Phase-5, Hayatabad, Peshawar. Complete Standard Bidding Documents can be downloaded free of cost from the official websites of the Khyber Pakhtunkhwa Public Procurement Regulatory Authority (http://www.kppra.gov.pk/kppra/) and the Excise Department (http://www.kpexcise.gove.pk/), or obtained in hard copy from the Director Revenue office during regular working hours from May 26, 2026 onwards. For further clarification, bidders may contact the Director General's office during regular business hours.