KP Budget 2024-25: Major announcement about wedding halls, hotels

PESHAWAR: The Khyber Pakhtunkhwa (KP) government fixed taxes on wedding halls in the budget for the fiscal year 2024-25, ARY News reported.

Addressing a post-budget press conference, Chief Minister (CM) Advisor on Finance Muzammil Aslam said that Category A halls will be taxed Rs 25,000 and Category B halls will be taxed Rs 15,000.

The advisor said the Khyber Pakhtunkhwa government has also reduced taxes on restaurants from 10 to 6 percent.

Muzammil Aslam said that the Khyber Pakhtunkhwa government will not impose taxes on FATA (Federally Administered Tribal Areas and PATA (Provincially Administered Tribal Areas).

He also demanded from the federal government not to impose taxes in these areas.

Muzammil Aslam said that the the provincial government recently received funds from the federal government for merged districts.

Earlier in the day, Khyber Pakhtunkhwa Finance Minister Aftab Alam unveiled the provincial budget for the next fiscal year 2024-25, with a total outlay of Rs1.6 trillion.

A special cabinet meeting, held under the chairmanship of KP Chief Minister Ali Amin Gandapur, approved the budget for the fiscal year 2024-25, as well as the Annual Development Program and the Finance Bill.

He said the government also increased its own revenue in recent years, but the federal government still owes the province Rs1800 billion, which has not been released yet.

Speaking of the KP budget 2024-25, the minister said it was prepared in consultation with the business community, with a focus on increasing revenue through taxation rather than relying on federal funds.

He announced plans to introduce a fixed sales tax on marriage halls, while reducing the commercial property tax from 16 per cent to 10pc.

The minister also proposed reducing the property tax on industrial units from Rs2.5 per square foot to Rs10,000 per kanal. He also proposed reducing the tax on land transfer from 6.5pc to 3.5pc.