Property, petrol pumps come under greater tax ambit

PESHAWAR: As part of its revenue-building measures, the Khyber-Pakhtunkhwa government proposed increasing tax rates on commercial property, CNG stations and petrol pumps along with increasing the motor vehicle tax.

K-P Finance Minister Muzaffar Said stated that no new tax has been made part of the proposed budget, but added that the government has increased existing tax rates through the Finance Bill 2016.

Under the property head, the government has proposed increasing the tax rate in all categories across the province. The government increased the urban immovable property tax on category-A1  locality from 9% to 13%. Similarly, category-A locality property has been increased from 7 to 10%, while for a category-B locality, the tax has been increased from 5 to 8%. For C-category locality the property tax has escalated from 3% to 5%.

The tax on filling stations has been increased from Rs10,000 to 15,000 and for CNG stations the tax rate is increased from Rs5,000 to Rs75,000 per year. Changes in motor vehicle tax has been. made in accordance with the capacity of the engine and the load they carry. The government has also imposed infrastructure development cess on commercial vehicles using the road infrastructure of K-P.

Published in The Express Tribune, June 15^th, 2016.

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