KP sets fixed sales tax for restaurants, wedding halls

PESHAWAR: The Khyber Pakhtunkhwa government unveiled its plan to implement a fixed sales tax on services offered by restaurants and wedding halls throughout the province.

This decision emerged from a meeting chaired by Fouzia Iqbal, the Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA), with the presence of Muzzammil Aslam, the Advisor to the Chief Minister on Finance.

During the meeting, the DG KPRA presented the proposal to transition from a percentage-based sales tax system to a fixed-rate system for various sectors, including wedding halls and beauty parlours.

The new tax rates will be categorized based on the size and business volume of the establishments. Furthermore, it was agreed that traders’ associations and chambers of commerce will be consulted, and all service providers will be required to register with KPRA.

Read more: Data-stealing malware grows from 4 to 28 per cent in three years

Additionally, the Minister announced a 2 per cent rebate for payments made via credit cards at restaurants and hotels registered as companies with KPRA under the 15% tax bracket. This initiative aims to build trust, facilitate taxpayers, and encourage documentation of the economy while providing convenience to both taxpayers and service providers.