The Khyber Pakhtunkhwa Finance Act, 2017.

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Department: Finance Department
Main Category: Acts
Specific Category Name: Finance
Year 2017
Promulgation Date: 23-06-2017
Details:

THE KHYBER PAKHTUNKHWA FINANCE ACT, 2017.

 

(KHYBER PAKHTUNKHWA ACT NO. XXVI OF 2017)

 

CONTENTS

 

PREAMBLE

 

SECTIONS

 

 

1.         Short title, extent and commencement.

2.          Amendment of West Pakistan Act No. V of 1958.

3.         Amendment of Khyber Pakhtunkhwa Act No. IV of 1990.

4.         Amendment in the Khyber Pakhtunkhwa Act No. XXI of 2013.

 

 

 

 

Appendix-I

 


 

THE KHYBER PAKHTUNKHWA FINANCE ACT, 2017.

 

(KHYBER PAKHTUNKHWA ACT NO. XXVI OF 2017)

[First published after having received the assent of the Governor of

 the Khyber Pakhtunkhwa in the Gazette of Khyber Pakhtunkhwa

(Extraordinary),dated the 23rd June, 2017].

 

AN

ACT

to levy, continue and revise certain taxes

in the Province of the Khyber Pakhtunkhwa

 

Preamble.-WHEREAS it is expedient to levy, continue and revise certain taxes in the Province of the Khyber Pakhtunkhwa;

 

            It is hereby enacted as follows:

 

1.         Short title, extent and commencement.---(1) This Act may be called the Khyber Pakhtunkhwa Finance Act, 2017.

 

            (2)        It shall extend to the whole of the Province of the Khyber Pakhtunkhwa.          

 

            (3)        It shall come into force on the first day of July, 2017.

 

2.         Amendment of West Pakistan Act No. V of 1958.---In the West Pakistan Urban Immoveable Property Tax Act, 1958 (W. P. Act No. V of 1958),-

 

(i)         for the existing Schedule-I, the Schedule-I specified in Appendix-I to this Act shall be substituted; and

 

(ii)        in Schedule-II,-

 

(a)        at S.No.7 for the figures “15000” and “7500”, the figures “22,500” and “11,250” shall respectively be substituted; and

 

(b)        at S.No.7A, for the figures "15000", the figures "20,000" shall be substituted.

 

3.         Amendment of Khyber Pakhtunkhwa Act No. IV of 1990.---- In the Khyber Pakhtunkhwa Finance Act, 1990 (Khyber Pakhtunkhwa Act No. IV of 1990), in section 7, for the existing Table, the “Table” specified in Appendix-II to this Act shall be substituted.

4.         Amendments in the Khyber Pakhtunkhwa Act No. XXI of 2013.---In the Khyber Pakhtunkhwa Finance Act, 2013 (Khyber Pakhtunkhwa Act No. XXI of 2013), in First Schedule, after existing entry “9803.3000”, the following new entry shall be added, namely:

“9803.4000                             Ride hailing services”.


 


Appendix-I

See section 2

 

“Schedule-I

(See section 3(2))

 

Part ‘ A’

S#

Category

Rate of tax for areas of Provincial headquarter as notified by the Government (per annum)

(Rs)

Rate of tax at Divisional headquarters (per annum) (Rs)

Rate of tax in suburban areas of Divisional Headquarters (per annum) (Rs)

Rate of tax at District Headquarters (per annum) (Rs)

Rate of tax at District other than District Headquarters (per annum) (Rs)

A

B

C

Town

ships

Other than Town

ships

Town

ships

Other than Town

ships

Town

ships

Other than Town

ships

Town

ships

Other than Town

ships

1

Up to 5 Marlas (other than self occupied)

 

1500

1300

1100

1300

1100

800

500

600

500

400

300

2

Exceeding 5 Marlas but not exceeding 10 Marlas

 

 

 

 

2500

2400

2200

2400

2200

1400

1100

1200

1100

900

700

 


 

3

Exceeding 10 Marlas but not exceeding 15 Marlas

 

3300

3100

3000

3100

3000

1600

1500

1600

1500

900

800

4

Exceeding 15 Marlas but not exceeding 18 Marlas

 

4800

4700

4500

4700

4500

2500

2300

2500

2300

1300

1000

5

Exceeding 18 Marlas but not exceeding 20 Marlas

 

15,000

13,500

12,000

13,500

12,000

7,500

4,500

6,000

3,000

2,250

1,500

6

Exceeding 20 Marlas but not exceeding 30 Marlas

 

22,500

21,000

18,000

21,000

15,000

12,000

9,000

7500

4500

4500

3000

7

Exceeding 30 Marlas but not exceeding 40 Marlas

 

30000

27000

24000

27000

24000

21000

18000

15000

12000

9000

6000

8

Exceeding 40 Marlas

45000

37500

30000

37500

30000

22500

18000

15000

12000

9000

6000

 


 

PART ‘B’

Building  acquired  for  the  use  by  Government,  Semi-Government,  Non  Government  Organizations,  Development  Financial Institutions, private commercial organizations, guest houses, hostels or by Banks shall be assessed and taxed twenty percent of the actual annual rent. In case building other than those exempted under section 4 of the Act, which are owned and occupied by such Organizations, tax shall be levied on the assessed annual rental value of such buildings on the rate prescribed hereinbefore.

 

PART ‘C’

Tax on properties let out on rent, lease or other arrangement and not in use of their registered owners will be double of  the above, except for the category-1 (upto 5 marlas).

 

Explanation:  Categorization of area in Provincial Headquarter into Category “A”, “B” or “C” shall be by way of notification by the  Local  Government  &  Rural  Development  Department,  to  be  notified  from  time  to  time.  In Divisional and District Headquarters, Townships are approved Townships and include those areas, which are declared so by Local Government & Rural Development Department from time to time.”.


 


 

 

Appendix-II

(See section (4))

“TABLE

S#

Description of Tax payers

Proposed rates (Rs) 

1

(i)                   All persons engaged in any profession, trade, calling or employment, other than those specifically mentioned hereinafter, in the Khyber Pakhtunkhwa Province, whose monthly income or earning

 

(a)        When exceeds Rs.3000 but not exceeds Rs.10000

 

Exempted

(b)         When exceeds Rs.10000 but not exceeds Rs.20000

 

330

(c)        When exceeds Rs.20000 but not exceeds Rs.50000

 

435

(d)        When exceeds Rs.50000 but not exceeds Rs.100000

 

600

(e)        When exceeds Rs.100000 but not exceeds Rs.200000

 

800

(f)         When exceeds Rs.200000 but not exceeds Rs.500000

1000

(ii)                Employees of Federal and Provincial Government Drawing pay in Basic Scales

 

(a)        BS-1 to 4

Exempted

(b)        BS 5 to 12

100

(c)        BS 13-16

200

(d)        BS-17

300

(e)        BS-18

500

(f)         BS-19

1,000

(g)        BS-20 and above

2,000

2

All limited companies, Modarbas, Mutual Funds and  Any other body corporate with paid up capital and reserves in the preceding year, whichever is more

 

(a)        When not exceeding Rs.10 million

27,000

(b)        When exceeding Rs.10 million but not exceeding 25 million

 

36,000

(c)        When exceeding Rs.25 million but not exceeding 50 million

 

50,000

(d)        When exceeding Rs.50 million but not exceeding 100 million

 

75,000

(e)        When exceeding Rs.100 million but not exceeding 200 million

 

95,000

(f)         When exceeding Rs.200 million

100,000


3

Persons, other than companies, owning factories, commercial establishments, private education institutions and private hospitals, having the following commercial establishment

 

(a)        Any commercial establishment/factories having 10 or more employees which have not been otherwise explicitly given in this table.

 

10,000

(b)        Private clinics & hospitals having upto 10 employees

 

10,000

(c)        Private clinics, hospitals having employees more than 10 but not more than 50

 

50,000

(d)        Private clinics & hospitals having more than 50 employees

 

100,000

(e)        Private Medical Colleges.

 

100,000

(f)         Private Engineering Institutes having degree programs

 

 

 

 

100,000

(g)        Private Business Education Institutes:

 

(i)  having upto 100 students

 

(ii) exceeding 100 students

 

 

 

70,000

 

100,000

(h)        Private Law Colleges

 

100,000

(i)          Private education institutions including professional and technical institutions other than specified at e,f, g & h charging monthly fee not exceeding Rs.1000 per student.

 

5,000

(j)          Private education institutions including professional and technical institutions other than specified at e,f, g & h charging monthly fee exceeding Rs.1000 but not exceeding Rs.2000 per student.

 

7,000

(k)        Private education institutions including professional and technical institutions other than specified at e,f, g & h charging monthly fee exceeding Rs.2000 but not exceeding Rs.5000 per student.

 

20,000

(l)          Private education institutions including professional and technical institutions other than specified at e, f, g & h charging monthly fee exceeding Rs.5000 per student.

100,000

4

Holders of import or export license, assessed to income tax in the preceding year with annual turnover

 

(a)        When not exceeding Rs.50000

4,000

(b)        When exceeding Rs.50000

5,000

5

Clearing agents licensed or approved as custom house agents

10,000

6

Travel Agents

(a)        IATA travel agents approved.

15,000

(b)        Non-IATA approved.

8,000

(c)        Hajj and tour operator

15,000

7

Restaurants/Guest Houses liable to sales tax

15,000

8

Professional Caterers

15,000

9

Wedding Halls/Lawns (irrespective of their nomenclature)

30,000

10

Advertisement Agencies

10,000

11

Doctors

(a)        Specialists

20,000

(b)        Non Specialists including Medical Practitioners, Hakeem’s, Homeopaths etc

 

10,000

(c)        Dentists

15,000

12

Diagnostic and Therapeutic Centers” including pathological and chemical laboratories”

 

(a)        Located at Divisional Head Quarter

20,000

(b)        Located at other places

 

 

 

7,000

13

Contractors, Suppliers and Consultants who, during preceding financial year supplied to the Federal or any Provincial Government or any local authority in the District, Goods, Commodities, or rendered service of the value

 

(a)        When exceeding Rs.10,000 but not exceeds

(b)        Rs.0.5 million

 

4,000

(c)        When exceeding Rs.0.5 million but not exceeding

(d)        Rs.1 million

 

5,000

(e)        When exceeding Rs.1.50 million but not exceeding Rs.2.500 million

 

7,000

(f)         When exceeding Rs.2.500 million but not exceeding Rs.10 million

 

18,000

(g)        When exceeding Rs.10 million but not exceeding Rs.25 million

 

25,000

(h)        When exceeding Rs.25 million but not exceeding Rs.50 million

 

30,000

(i)          When exceeding Rs.50 million

100,000

14

Petrol/Diesel/CNG filling stations

12,000

15

All establishments, including video shops, real estate shops/ agencies, card dealers, and net cafes assessed or not assessed to income tax in the preceding financial year.

5,000

16

Chartered Accountants with an independent audit practice and excluding those who are employed in companies not owned by them.

15,000

17

Vehicles Service Stations

8,000

18

Transporters/Transport companies.

(a)        Within Provincial Headquarters limits

3,000

(b)        Others

2,000

19

Member of Stock Exchange

5,000

20

Money Changer

(i)     Within Provincial Headquarters limits

10,000

(ii)    Others

5,000

21

Health Fitness Centers/Gymnasium

(i)     Within Provincial Headquarters limits

2,000

(ii)    Others

1,000

22

Jewelers

1,000

23

Departmental Stores

10,000

24

Electronic goods Stores

1,000

25

Cable Operators

10,000

26

Printing Presses

1,000

27

Pesticides Dealers

1,000

28

Tobacco Whole Sellers

2,000

29

Whole Sale Dealers/agency holder

10,000

30

Chemist/Druggist/Medical Stores

10,000

31

Tailor Shops

 

 

(a)        Shalwar Qameez+wastecoat

5,000

(b)        Shilwar Qameez+wastecoat+pant shirt

10,000.”