PESHAWAR: The Khyber Pakhtunkhwa government has decided to adopt a fixed sales tax on services for Lawyers and Custom Agents instead of a percentage.
The decision was taken in a meeting between Advisor to KP Chief Minister on Finance Muzzammil Aslam and Director General Khyber Pakhtunkhwa Revenue Authority Fouzia Iqbal.
It was decided that KPRA will send recommendations to the Advisor for Finance to switch Lawyers and Customs Agents from percentage regime of Sales Tax on Services to fixed rates to make necessary amendments in the Khyber Pakhtunkhwa Sales Tax on Services Act 2022 in the upcoming budget for the next financial year.
The decision has been made to provide an easy way for customs agents and lawyers to pay their sales tax on services efficiently.
It was decided that fixed tax rates would be adopted per the recommendations sent by the KPRA team to the finance department for the budget.
The lawyers will be allowed to submit their one-time fixed sales tax on services at the time of filing their Wakalatnama or Power of Attorney for each case at the courts, while for customs agents, a fixed amount on each GD or Goods Declaration will be paid to KPRA as sales tax on services. Currently, a 2 percent sales tax on services is levied on Layers, while an 8 percent sales tax on services tax is levied on Customs Agents.
“We want to make tax payments easier for everyone in the province, and at the same time, we have to bring them under the tax net as per law,” said Advisor for Finance Muzzammil Aslam in his statement, adding that a fixed regime will also be adopted for wedding halls, beauty parlors as well.
“It will make tax payments easier for the business community and service providers in the province and will make a conducive environment for businesses in the province,” he said. The DG KPRA, Fouzia Iqbal, said that her team welcomes the business-friendly policies of the new government and that her team will be available to assist every taxpayer in administrating their sales tax on services.
