Peshawar: The Khyber-Pakhtunkhwa Revenue Authority (KPRA) has proposed a reduction of sales tax on 31 service industries, including the real estate business in the fiscal year 2021-22 (FY 22), news sources reported. The tax reduction suggestions will be part of the Finance Act 2021 which is scheduled to be tabled in the provincial assembly soon.
According to a press release from the provincial revenue department, the decision was taken in response to taxpayer requests. As part of the tax relief, ten of the benefitting industries will be subjected to only 1% sales tax during FY 22. A list of the industries that will benefit from the relief is as follows:
Moreover, the hotel tax in Naran and Kaghan has been cut from 8% to 5% in order to boost tourism in the province. Also, the sales tax on club services and local independent and local chain hotels has been lowered from 15% to 8%. The sales tax on mines and minerals has been lowered from 15% to 2%.
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