KP Government Simplifies Sales Tax Payment for Lawyers and Customs Agents

The Khyber Pakhtunkhwa government has made a significant decision to simplify the process of sales tax payment for Lawyers and Customs Agents by switching from a percentage-based system to fixed rates. This decision was reached during a meeting between Advisor to KP Chief Minister on Finance Muzzammil Aslam and Director General Khyber Pakhtunkhwa Revenue Authority Fouzia Iqbal.

Under the new system, the KPRA will recommend fixed rates for sales tax on services for Lawyers and Customs Agents, aiming to amend the Khyber Pakhtunkhwa Sales Tax on Services Act 2022 in the upcoming budget for the next financial year. This move is intended to streamline tax payments for these professionals.

Lawyers will now have the option to pay a one-time fixed sales tax on services when submitting their Wakalatnama or Power of Attorney for each case at the courts. Similarly, Customs Agents will pay a fixed amount on each Goods Declaration to KPRA as sales tax on services. Currently, Lawyers are subject to a 2 percent sales tax on services, while Customs Agents face an 8 percent tax.

Advisor for Finance Muzzammil Aslam emphasized the government's commitment to simplifying tax payments and expanding the tax base. The fixed tax regime will also extend to wedding halls and beauty parlors, aiming to create a more business-friendly environment in the province.

Director General KPRA Fouzia Iqbal expressed support for the government's business-friendly policies and assured assistance to taxpayers in managing their sales tax obligations effectively.