KP govt restores property tax collection

Provincial govt aims to add 5.5bn to revenue from a year's collection

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has restored the government’s right to collect property tax across the province after two years in hope of adding Rs5.5 billion to its revenue annually. 

As per details, the KP cabinet has restored 2% property tax on immovable property tax which was earlier waived off due to the coronavirus pandemic.

Officials of the Finance Department said that all the TMAs have been directed to collect local council fees at the rate of 2%. The tax collection process will begin from July 1.

It may be recalled that the provincial government had stopped TMAs from collecting property tax for a period of two years, releasing Rs4 billion and Rs1 billion in each of those years to TMAs for meeting their expenditures. Now that the situation has returned to normal, the provincial government has decided to restart tax collections. 

According to local government department sources, more than Rs5.5 billion as property tax is expected to be collected this year.

Aziz Buneri
Aziz Buneri
Aziz Buneri covers financial, social, political and regional issues for Pakistan Today and Profit. He can be reached at [email protected]

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