Finance Bill 2024-25: KP Assembly introduces tax reforms

PESHAWAR: The Khyber Pakhtunkhwa Assembly has passed the Finance Bill 2024-25, implementing a series of tax reforms and adjustments across various sectors.

Under the newly passed bill, a tax of 3 per cent will be imposed on ‘Virginia tobacco’ at a rate of Rs50 per kilogramme, while a tax of Rs7 per kilogramme has been levied on ‘Naswar’ tobacco.

Moreover, a 2 per cent tax will be applicable on the purchase and sale of plots in housing societies across the province.

The Finance Bill also includes the incorporation of taxes on locally produced coal, nephrite, chromite, and graphite into the tax net.

Furthermore, companies engaged in the purchase of tobacco from farmers in Khyber Pakhtunkhwa will now be required to register themselves with the Excise Department.

In terms of property taxes, houses measuring less than 5 marlas are exempted, while properties ranging from 5 to 10 marlas will be subjected to a tax of Rs3,000. For larger properties, the tax rates escalate with 15 marlas taxed at Rs3,000 and 18 marlas at Rs4,000.

Additionally, taxes on land have been introduced with Rs15,000 imposed on one kanal and Rs40,000 on two kanals.

The education sector will also witness tax implementations with private primary schools facing an annual tax of Rs40,000, middle schools Rs50,000, and high schools Rs100,000.

Moreover, private universities will be subjected to an annual tax of Rs2 million under the Finance Bill.

Industrial areas will experience an increase in industrial plot taxes by Rs10,000.

Property taxes have been adjusted with service stations facing a tax of Rs20,000, while petrol and CNG stations will incur a tax of Rs50,000.

Furthermore, a tax of Rs40,000 has been imposed on mobile phone towers, and motorcycles will now require a life-time token tax of Rs2,000.

Wedding halls will fall under three tax categories, with taxes ranging from Rs15,000 to Rs25,000.

Moreover, there will be an increase in traffic fines for violations of traffic laws under the Finance Bill.

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