In another tax relief package, the Khyber Pakhtunkhwa government has proposed to reduce and rationalize sales tax on 31 different services in the province.
According to the details issued by Khyber Pakhtunkhwa Revenue Authority (KPRA) here on Saturday, the sales tax on 10 different services have been brought down to only one percent for the fiscal year 2021-22.
Last year, the KP government had reduced sales tax on 29 different services as a tax relief package to the businesses and this year the sales tax rates on different sectors have been reduced and rationalized mostly on the requests of the taxpayers’ community.
To provide relief to the business community, the Khyber Pakhtunkhwa Chief Minister Mahmood Khan and KP Minister Finance Taimur Khan Jhagra issued special directives to the KPRA for reducing tax rates in certain sectors associated with services.
The changes in the sales tax on services have been proposed in the Finance Act 2021 which will be legislated by the provincial assembly in the ongoing budget session.
“On the directives of the Chief Minister Mahmood Khan, we are taking special measures to compensate the business community affected by the pandemic.
The tax relief for the second consecutive year is one of the measures the provincial government is taking to mitigate the impacts of the pandemic on the businesses particularly related to the services sector,” said the Finance Minister Taimur Khan Jhagra in his message.
According to details, the sectors inserted in the 1% tax slab includes Print Media advertisements, Property Dealers, Agriculture Cold Storage and Warehouse, Industrial workshops, Car wash services, Cinematographic services, Quality assurance and inspection services, Auctioneers, installation and commissioning services and Underwriter services.—APP