The Khyber Pakhtunkhwa government has planned to impose a specific amount of sales tax on services provided by restaurants and wedding venues across the state.
The decision was made during a meeting convened by Fouzia Iqbal, Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA).
Muzzammil Aslam, Advisor to the Chief Minister on Finance, was also present during the meeting.
The DG KPRA addressed the minister on difficulties with the transition of sales tax on services from a percentage to a fixed regime in various sectors throughout the province, including wedding halls and beauty parlors.
Wedding halls and beauty parlors will be classified based on their size and business volume, and sales tax rates will be determined for each category.
It was also determined to include trade groups and chambers of business, as well as to require all service providers to register with KPRA.
The minister also stated that customers who pay with credit cards at restaurants and hotels registered with KPRA in the 15% tax slabs will receive a 2% rebate.
“We are taking these steps to overcome the trust deficit and to facilitate our taxpayers and service providers,” the Advisor stated, adding that the goal is to document the economy and make it easier for taxpayers and service providers.