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KP to Offer Sales Tax Relief to 31 Service Industries

Peshawar: According to news reports, the Khyber-Pakhtunkhwa Revenue Authority (KPRA) has suggested a lowering of sales tax on 31 service industries, including the real estate industry, in fiscal year 2021-22 (FY 22). The tax reduction proposals will be included in the Finance Act 2021, which will soon be introduced to the provincial parliament.

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The provincial revenue agency issued a press release stating that the decision was made in response to taxpayer requests. As part of the tax reduction, 10 of the affected industries would be subject to a sales tax rate of only 1% during FY 22. The following is a list of the industries that will profit from the relief:

  • Publications advertising
  • Property agents
  • Agriculture cold storage and warehousing Manufacturing facilities
  • Car cleaning services
  • Offering cinematic services
  • Services for quality assurance and inspection
  • Auctioneers
  • Services for installation and commissioning
  • Underwriter assistance

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In addition, the hotel tax in Naran and Kaghan has been reduced from 8% to 5% to promote tourism in the province. In addition, the sales tax on club services as well as local independent and chain hotels has been reduced from 15% to 8%. The mining and minerals sales tax has been reduced from 15% to 2%.

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