The Excise, Taxation and Narcotics Control Department is primarily engaged in collection of various provincial taxes, duties, fees and cess items. Its functions include tax facilitation and extends to trace-out the use of illegal and smuggled vehicles and traffic in contraband’s. It performs regulatory and public welfare functions/services such as motor vehicle registration and development of tobacco crop, tobacco production areas and tobacco farmers, through utilization of collected Tobacco Development Cess (TDC). The Department is also mandated to register Motor Vehicle Dealers, Real Estate Agents and Video Cassette Shops. The Excise, Taxation and Narcotics Control Department carries a distinction amongst the line departments of Khyber Pakhtunkhwa for its three-pronged functions of Taxation, Regulation and Public Welfare.

Excise & Taxation Department was an attached department of the Board of Revenue of the Provincial Government till 1997. From 1997 to 2000 it remained attached with the Finance Department and was upgraded as full fledged Department in November 2000.