Daily Times

The Khyber Pakhtunkhwa government has announced to charge a fixed amount of sales tax on services from restaurants and wedding halls across the province. The decision was taken in a meeting chaired by Director General Khyber Pakhtunkhwa Revenue Authority (KPRA) Fouzia Iqbal. Advisor to the Chief Minister on Finance Muzzammil Aslam was also present in the meeting. The DG KPRA briefed the minister on issues related to shifting of sales tax on services from percentage to fixed regime in various sectors including wedding halls and beauty parlors across the province. The wedding halls and beauty parlors will be divided into different categories depending on their sizes and business volumes and rates of sales tax will be fixed for different categories. It was also decided that traders’ associations and chamber of commerce will be taken on board and all the service providers will be compulsorily registered with KPRA. The minister also said that a rebate of 2 percent will be given to those who make payments on credit cards in restaurants and hotels registered as companies with KPRA in the 15% tax slabs. “We are taking these steps to overcome the trust deficit and to facilitate our taxpayers and service providers,” the Advisor said adding that these steps aim to document the economy and provide ease to the taxpayers and service providers.