KP govt introduces tax on wedding halls in budget for FY2024-25

Peshawar: Khyber Pakhtunkhwa (KP) government on Friday  introduced taxation on wedding halls in its budget for the fiscal year 2024-25.

During a post-budget press conference, Chief Minister's Advisor on Finance, Muzammil Aslam, announced that Category A halls will face a tax of Rs 25,000, while Category B halls will be taxed Rs 15,000. Additionally, taxes on restaurants have been reduced from 10 to 6 percent.

Aslam emphasized that the KP government will exempt FATA (Federally Administered Tribal Areas) and PATA (Provincially Administered Tribal Areas) from taxation and urged the federal government to follow suit.

Furthermore, Aslam highlighted the recent funds received from the federal government for the merged districts.

Earlier in the day, KP Finance Minister Aftab Alam presented the provincial budget for the next fiscal year 2024-25, amounting to Rs1.6 trillion. The budget, approved in a special cabinet meeting chaired by KP Chief Minister Ali Amin Gandapur, prioritizes increasing revenue through taxation and reducing reliance on federal funds.

Key proposals include introducing fixed sales tax on marriage halls, reducing commercial property tax from 16% to 10%, lowering the property tax on industrial units, and reducing the tax on land transfer.