KP govt to adopt fixed sales tax on lawyers, custom agents’ services

PESHAWAR   -  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 between Advisor to Khyber Pakh­tunkhwa 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 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 par­lours as well.

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