PESHAWAR: A copy of the Khyber Pakhtunkhwa (KP) Finance Bill 2026 has surfaced, outlining proposed tax changes across multiple sectors.
The draft bill suggests amendments to existing taxes, fees and duties, along with new rates for several industries. If approved by the assembly, the measures will come into force on July 1, 2026.
Property tax relief on the table
Residential property owners could get a 30percent waiver on outstanding dues up to June 30, 2026. The offer applies only if the full amount is paid by December 31, 2026.
Hotels face new slabs
Room rent tax would depend on POS integration. Hotels connected to the Point of Sale system are proposed at 5percent. Those not linked to POS would be charged 10percent.
Professional tax tweaks
Earners at the minimum wage level are proposed for exemption from professional tax. Higher income brackets get new rates. People earning over Rs300,000 a month would pay Rs5,500 annually.
The draft of KP Finance Bill 2026 also revises professional tax for government employees, private schools, hospitals, companies, jewelers, department stores, petrol pumps and other businesses.
Private schools, medical, engineering and law colleges charging monthly fees above Rs5,000 are set at Rs100,000 per year. Private hospitals with more than 50 employees would fall under the same Rs100,000 annual rate.
All proposals remain subject to assembly approval and completion of the legislative process before they become law.
