Peshawar, The Khyber Pakhtunkhwa government, led by Finance Adviser Muzamil Aslam, announced a significant shift in the tax structure for wedding halls and restaurants, replacing the existing 8% tax with a fax tax, aimed at broader tax registration and compliance. This move is part of a broader effort to rationalize the tax system and boost provincial revenue.

According to Directorate General Information and PRs – Khyber Pakhtunkhwa, Aslam articulated the plan during a consultation meeting of the Khyber Pakhtunkhwa Revenue Authority (KPRA), noting the current disparity in tax collection relative to population size and emphasizing the high property tax rate of 23%. The discussion highlighted the necessity of reforming the local tax regime to increase revenue and ensure equitable taxation across various sectors, including tourism, which currently faces minimal taxation.

The Finance Adviser directed the establishment of a women’s desk by the KPRA to support female entrepreneurs and pledged to minimize the tax burden to facilitate business expansion. He addressed the critical need for Khyber Pakhtunkhwa to augment its own income sources, given the province’s heavy reliance on federal transfers for funding.

The meeting also served as a platform for stakeholders to contribute to the formulation of new tax rules and regulations, ensuring transparency and efficiency in their implementation. The envisaged tax reforms are expected to stimulate provincial autonomy and development, funded by a more robust and fair taxation system.