The Khyber Pakhtunkhwa government has announced a fixed sales tax on services at restaurants and wedding halls province-wide.
The decision was made during a meeting led by Fouzia Iqbal, Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA), with the presence of Muzzammil Aslam, Advisor to the Chief Minister on Finance.
The meeting discussed transitioning from a percentage-based sales tax to a fixed regime for various sectors, including wedding halls and beauty parlors.
Sales tax rates will vary based on the size and business volume of establishments.
Additionally, traders’ associations and chambers of commerce will be consulted, and all service providers must register with KPRA.
A 2% rebate will be granted to credit card payments at restaurants and hotels registered with KPRA under the 15% tax bracket.
The aim of these measures is to build trust, support taxpayers, and streamline the economy.
