KP govt to consult stakeholders on new tax policy

PESHAWAR: Advisor to Chief Minister for Finance Muzzamil Aslam said on Tuesday the KP government would formulate tax policy for the next financial year after consulting the stakeholders.

According to a handout, he said this in a meeting with the Khyber Pakhtunkhwa Revenue Authority (KPRA) Director General Fouzia Iqbal who met him along with other officials. She briefed the advisor on the tax rates in different sectors, major revenue streams, and the overall collection of KPRA in the past eight months of the current financial year.

The strategy for tax collection in the remaining four months of the ongoing financial year was discussed as well.The KPRA chief assured the advisor that her team was making every effort to achieve the revenue target assigned to the authority by the provincial government.

Advisor to KPRA on Tax Enforcement Fazal Amin Shah accompanied the KPRA head. He responded to the questions raised.The advisor was informed that the KPRA had collected Rs26.86 billion by February, and the target for the current year was Rs42 billion.

The advisor said as the tax policy for the next financial year would be formulated after consulting the stakeholders, he directed the KPRA chief to arrange pre-budget consultations with representatives from chambers of commerce and industries, owners’ associations of restaurants, hotels, wedding halls, car showrooms, and catering service providers for discussions.

It was decided that the KPRA would start lottery schemes for restaurants/hotels to encourage documentation of economy and tax acculturation in the province and incentivize the restaurants/hotels business across the province including the newly merged districts.

The advisor agreed to withdraw tax exemptions given to certain sectors and bring them into the tax net. He sought necessary documentation for the withdrawal through the cabinet from the KPRA team.