The Khyber Pakhtunkhwa government has unveiled its fiscal year 2024-25 budget, introducing significant changes to the tax regime aimed at boosting provincial revenue.
To increase tax revenue by Rs10 billion, the provincial government has set an ambitious target, estimating the collection of provincial taxes at Rs63.19 billion.
One of the most notable introductions is the provincial excise duty on tobacco. For the first time, this tax will be collected from tobacco companies at the rate of Rs50 per kilogram. Additionally, the tax on snuff tobacco has been increased from Rs2.5 to Rs7.5 per kilogram.
In the real estate sector, a 2% tax has been imposed on purchasing and selling plots within housing societies. Residential properties will also see new taxes, with owners of 5 to 10 marla houses required to pay Rs3,000, owners of 15 marla houses Rs3,500, and owners of 18 marla houses Rs4,000.
For larger properties, a tax of Rs15,000 will be imposed on one-kanal houses, and Rs40,000 on two-kanal residences.
The education sector is also impacted, with private institutions facing new annual taxes: Rs40,000 for primary schools, Rs50,000 for middle schools, Rs100,000 for high schools, and Rs250,000 for universities.
Service providers are not exempt from these changes. Service stations will now be taxed Rs20,000 annually, CNG stations Rs50,000, and mobile towers Rs40,000. Additionally, marriage halls will face new tax brackets: Rs15,000, Rs20,000, and Rs25,000 depending on their category.
Traffic fines are also set to increase, with penalties rising from Rs400 to Rs1,000 for various violations.
