The Khyber Pakhtunkhwa government has decided to impose a standardized sales tax on services provided by restaurants and wedding halls across the province.
The decision was made during a meeting chaired by Fouzia Iqbal, Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA), and attended by Muzzammil Aslam, Advisor to the Chief Minister on Finance.
The DG KPRA provided a detailed briefing to the CM’s advisor regarding the transition of sales tax on services from a percentage-based system to a fixed regime, particularly focusing on sectors such as wedding halls and beauty parlors.
Wedding halls and beauty parlors will be categorized based on their sizes and business capacities, with fixed rates of sales tax set for each category.
The meeting also decided that traders’ associations and chambers of commerce will be consulted, and all service providers will be required to register with KPRA.
Muzzammil Aslam added that a 2 percent rebate will be offered to customers who use credit cards for payments at restaurants and hotels registered as companies with KPRA under the 15% tax bracket.
“We are implementing these measures to bridge the trust gap and to support our taxpayers and service providers,” the advisor said.
He further stated that these initiatives are directed towards formalizing the economy and providing convenience to both taxpayers and service providers.