PESHAWAR: The Khyber Pakhtunkhwa Cannabis Regulatory Authority has approved a reduction in licence fees for cannabis cultivation and processing, along with key changes to excise duties on cannabis and industrial hemp products, according to official documents.
Under the revised fee structure, the licence fee for cannabis cultivation has been reduced from Rs0.6 million to Rs0.5 million, while the fee for cannabis processing has been lowered from Rs1.5 million to Rs1 million.
Similarly, the licence fee for industrial hemp processing has been cut from Rs0.7 million to Rs0.5 million, aimed at encouraging investment and formalising the emerging sector in the province.
Changes in Excise Duties
The authority has also decided to abolish excise duty on industrial hemp and hemp seed oil, providing relief to businesses involved in hemp-based products. However, excise duty on full-spectrum Cannabidiol (CBD) and Tetrahydrocannabinol (THC) has been increased from Rs3,000 per kilogram to Rs5,000 per kilogram.
Officials said the revised duty structure is intended to balance revenue generation with regulatory oversight of high-value cannabis derivatives.
Decisions Taken in Regulatory Meeting
The decisions were taken during a meeting of the Cannabis Regulatory Authority held on December 22, chaired by the provincial minister for excise, taxation and narcotics. The meeting followed recommendations put forward earlier this month by a dedicated sub-committee.
During the session, officials also presented the proposed Hemp Model for Khyber Pakhtunkhwa, outlining a structured framework for cultivation and processing.
Pilot Hemp Cultivation Licences Approved
The authority approved the issuance of pilot hemp cultivation licences to selected industries operating in the province. The framework allows partnerships between licensed industries and local farmers, a move aimed at promoting agricultural diversification and industrial growth.
Officials believe the initiative will help develop a regulated hemp industry while creating new economic opportunities for farmers in Khyber Pakhtunkhwa.
