Tax regime: June 25 deadline for K-P marriage halls
Lower corporate tax rates are associated with higher investment-to-GDP and State GDP growth, more rapid employment growth and most importantly higher government tax revenues and foreign exchange reserves. PHOTO:FILE
The Khyber-Pakhtunkhwa Revenue Authority (KPRA) has fixed June 25 of this month as the deadline for the owners of wedding halls across the province to opt between fixed regime of sales tax on services or percentage regime for the next financial year 2024-25.
According to details shared by the KPRA media wing, through the Khyber-Pakhtunkhwa Finance Act, 2024 the provincial government has introduced a fixed or flat sales tax regime for the services provided by the wedding halls. Wedding hall owners have been given a choice to either pay a fixed tax or go for percentage as per their own convenience.
Under the new set-up, wedding halls have been divided in three categories i.e., Category-A, Category-B and Category-C based on their seating capacity.
For this purpose, a new clause has been inserted in Entry No. 1 of the Second Schedule to the K-P Sales Tax Act, 2022 which shall take effect from the first day of July 2024.
The aim of this step is to simplify the payment mechanism by the sector besides bringing transparency and fairness in the system. This will not only reduce compliance cost but will also increase administrative efficiency through streamlined tax collection processes, reducing the need for extensive tax enforcement and audit mechanisms.
This new tax rates are significantly low as compared to previous rate of 8 per cent of the value of such services.
One of the conditions of the above amendments requires owner or authorized representative of marriage halls, lawns, pandals and shamianas (Classification 9801.3000) to opt for the new regime latest by 25 of June 2024.