KP to adopt fixed sales tax on services for lawyers

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has decided to adopt a fixed sales tax on services for lawyers and customs agents instead of a percentage, ARY News reported.

The decision was taken in a meeting held on Wednesday 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 a percentage regime of sales tax on services to fixed rates to make necessary amendments to 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 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 two percent sales tax on services is levied on layers, while an eight percent sales tax on services 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 would also be adopted for wedding halls and beauty parlors as well.

“It will make tax payments easier for the business community and service providers in the province and will create a conducive environment for businesses in the province,” he said.

The DG KPRA, Fouzia Iqbal, said, “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 on services.”