Khyber Pakhtunkhwa Finance Bill 2026 Proposes New Taxes Across Multiple Sectors
PESHAWAR:** A copy of the **Khyber Pakhtunkhwa Finance Bill 2026** has been received, revealing a range of proposed tax measures, amendments, and revised rates across various sectors.
According to the document, if approved, the new financial measures will take effect from **July 1, 2026**.
The bill proposes a **30 percent rebate** for property owners on the lump-sum payment of outstanding residential property taxes. This relief would apply to arrears up to June 30, 2026, provided the payment is made by December 31, 2026.
The proposed legislation also introduces new tax structures for the hotel industry. Hotels integrated with the **Point of Sale (POS)** system would be subject to a **5 percent tax on room rent**, while non-compliant hotels would face a **10 percent tax rate**.
Under the draft, individuals earning up to the minimum wage would be exempt from professional tax, while higher income groups would fall under new tax slabs. Those earning more than **Rs300,000 per month** are proposed to pay an annual professional tax of **Rs5,500**.
The bill also outlines revised professional tax rates for government employees, private educational institutions, hospitals, companies, jewelers, departmental stores, petrol pumps, and other business sectors.
Private schools charging more than **Rs5,000 monthly fees**, as well as private medical, engineering, and law colleges, are proposed to pay an annual tax of **Rs100,000**. The same rate is also suggested for private hospitals employing more than 50 staff members.
Officials said the proposed measures aim to increase provincial revenue and broaden the tax base, but they will only take effect after approval by the provincial assembly and completion of the legislative process.
