In order to increase provincial revenue, the Khyber Pakhtunkhwa administration significantly altered the tax code when it released its budget for the fiscal year 2024–25.
The provincial government has set a lofty goal of raising tax revenue by Rs10 billion, based on an estimate of Rs63.19 billion from the collection of provincial taxes.
The province excise tax on tobacco is one of the most noteworthy introductions. Tobacco companies would be subject to this tax for the first time, with a charge of Rs50 per kilogram. The snuff tobacco tax has also been raised from Rs 2.5 to Rs 7.5 per kilogram.
A two percent tax has been put on the buying and selling of plots in housing societies in the real estate industry. There will be new levies on residential properties as well, with owners of five to do it.
Larger properties would be subject to a levy of Rs 40,000 on homes with two Kanals and Rs 15,000 on houses with one Kanal.
The private educational institutions are subject to additional yearly taxes of Rs40,000 for elementary schools, Rs50,000 for middle schools, Rs100,000 for high schools, and Rs250,000 for universities. This has an impact on the education industry as well.
These modifications do not apply to service providers. The new taxes are as follows: cell towers will pay Rs40,000, CNG stations Rs50,000, and service stations Rs20,000. In addition, marriage halls would be subject to three new tax categories based on their category: Rs 15, 000, Rs 20,000, and Rs 25,000.
