KP to adopt fixed sales tax on services for lawyers and custom agents
PESHAWAR: The Khyber Pakhtunkhwa government has decided to adopt fixed
sales tax on services for Lawyers and Custom Agents instead of
percentage.
The decision was taken in a meeting held 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 taken to provide an easy way for the Customs
Agents and Lawyers to efficiently pay their sales tax on services.
It was decided that rates for the fixed tax will be adopted as per the
recommendations sent by 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 the administration of their sales tax.
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