PESHAWAR: The government of Khyber Pakhtunkhwa is set to impose new taxes and revise previous tax rates for the upcoming fiscal year from July 1.
According to the provincial finance bill 2019, income tax on people earning more than Rs 20,000 per month and government employees of grade 7 and above has been increased. A set of new taxes is to be imposed on several sectors of the economy.
“All persons engaged in any profession, trade or employment, whose income is higher than Rs20,000 per month but less than Rs30,000, would be liable to pay Rs1,000,” reports media.
Express Tribune reported that according to the new tax slab imposed by the KP government,
“People earning over Rs30,000 per month but less than Rs50,000 would pay Rs1,200 in tax and people earning in the bracket of Rs50,000-100,000 would pay Rs1,500 in tax.”
The bill further read that federal and provincial government employees from grade 7-22 would pay provincial income tax of Rs.1000-3000.
Tax on private clinics and hospitals is based on the number of employees and whether practitioners are specialist or non-specialist. The bill further states that fitness centers and gymnasium will be taxed in the range of Rs.1500-3000.
As per the bill, the provincial government has imposed a penalty of up to Rs 100,000 or 5% whichever is higher for tax evaders. Similarly, imprisonment of up to one year with or without the penalty for the banker who fails to deposit or delay the deposit of collected withholding tax with the provincial tax collection authority will be imposed.
In a new development, the government announced to slash taxes on cabs and e-commerce business.
“We are reducing the tax rate on ride-hailing services to 2% and on online marketplace services to 5% because we believe that these will go a long way towards job creation for the youth,” according to the budget documents.
The budget document comprises of other taxes including agriculture as well as advertisements. According to the Express Tribune, a tax of Rs 225 will be levied on irrigated land between 1 acre and 12.5 acres.
One irrigated acre of land equals two un-irrigated acres. A tax of Rs 240 will be levied on land exceeding 12.5 acres, however this excludes orchards, which will be taxed at Rs 900.
Further taxes involve TV and cable advertisements, telecommunications, ancillary services, etc.
According to the provincial finance bill 2019, income tax on people earning more than Rs 20,000 per month and government employees of grade 7 and above has been increased. A set of new taxes is to be imposed on several sectors of the economy.
“All persons engaged in any profession, trade or employment, whose income is higher than Rs20,000 per month but less than Rs30,000, would be liable to pay Rs1,000,” reports media.
Express Tribune reported that according to the new tax slab imposed by the KP government,
“People earning over Rs30,000 per month but less than Rs50,000 would pay Rs1,200 in tax and people earning in the bracket of Rs50,000-100,000 would pay Rs1,500 in tax.”
The bill further read that federal and provincial government employees from grade 7-22 would pay provincial income tax of Rs.1000-3000.
Tax on private clinics and hospitals is based on the number of employees and whether practitioners are specialist or non-specialist. The bill further states that fitness centers and gymnasium will be taxed in the range of Rs.1500-3000.
As per the bill, the provincial government has imposed a penalty of up to Rs 100,000 or 5% whichever is higher for tax evaders. Similarly, imprisonment of up to one year with or without the penalty for the banker who fails to deposit or delay the deposit of collected withholding tax with the provincial tax collection authority will be imposed.
In a new development, the government announced to slash taxes on cabs and e-commerce business.
“We are reducing the tax rate on ride-hailing services to 2% and on online marketplace services to 5% because we believe that these will go a long way towards job creation for the youth,” according to the budget documents.
The budget document comprises of other taxes including agriculture as well as advertisements. According to the Express Tribune, a tax of Rs 225 will be levied on irrigated land between 1 acre and 12.5 acres.
One irrigated acre of land equals two un-irrigated acres. A tax of Rs 240 will be levied on land exceeding 12.5 acres, however this excludes orchards, which will be taxed at Rs 900.
Further taxes involve TV and cable advertisements, telecommunications, ancillary services, etc.