Tax Reforms Announced In KP Budget 2024-25

The Khyber Pakhtunkhwa finance minister Aftab Alam Friday announced tax reforms including sales and property taxes, tobacoo cess and other receipts in budget 2024-25 to broaden tax revenue

PESHAWAR, (UrduPoint / Pakistan Point News - 24th May, 2024) The Khyber Pakhtunkhwa finance minister Aftab Alam Friday announced tax reforms including sales and property taxes, tobacoo cess and other receipts in budget 2024-25 to broaden tax revenue.

Presenting annual budget 2024-25 at KP Assembly, the minister said that significant reduction has been made on various categories of sales taxes on services under KP Revenue Authority. The minister said the ratio of sales tax on hotels have been made six percent and Restaurants Invoice Management System has been made mandatory for all hotels.

He said that proposals have been forwarded to introduce fixed sales taxes rate on marriages halls. Likewise, existing property tax on factories that is Rs13,600 per kanal has been reduced to 10,000 rupees per kanal while commercial property tax was reduced from 16 percent to 10 percent monthly whereas tax on private hospitals, medical stores and associated business of healthcare reduced from 16pc to five percent.

Aftab said that the government was deliberating on proposal to increase tobacco development cess and the bill to impose provincial excise duty on tobacco would soon be tabled in the provincial assembly. He said that tax would be imposed on tobacco company rather than growers.

He proposed deduction of taxes on property transfer from 6.5 percent to 3.5 percent. The budget also includes steps to increase receipts in mineral, tourism, transport, mass transit, food, trade, labour, climate change, wildlife and agriculture department.