KP govt enforces sales tax in Malakand Division, merged districts


pension reforms

PESHAWAR: The Khyber Pakhtunkhwa’s interim government has extended sales tax to Malakand Division and merged tribal districts after consultation with the Khyber Pakhtunkhwa Revenue Authority’s policy board.

According to the officials of the Khyber Pakhtunkhwa Revenue Authority, the provincial government has withdrawn the notification issued regarding the exemption of sales tax on services in Malakand Division and merged districts and has abolished the exemption of sales tax on services in the said areas.

The officials told Hum News English that after the merger of tribal districts in Khyber Pakhtunkhwa in March 2019, the provincial government had abolished the collection of sales tax on services in Malakand Division and tribal districts and had given a three-year exemption to the institutions and individuals providing services in the said areas.

According to the officials of the Khyber Pakhtunkhwa Revenue Authority, the period of the said exemption expired in June last year, however, the provincial government at that time had extended the period of sales tax exemption till October 2023.

They said that after the expiry of the extended date of sales tax exemption, the caretaker provincial government did not extend the exemption of sales tax on services in Malakand Division and merged tribal districts.

KP’s merged districts stuck in yet another bureaucratic quagmire

They said that the FBR was already collecting all taxes in the said areas.

According to sources, the Khyber Pakhtunkhwa Revenue Authority has also started consultation on imposing infrastructure cess tax in the said areas.

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