The provincial minister in his budget speech said primarily they are working on broadening the tax base. But, in fact they are reducing taxes in may places, only adjusting minor fees for inflation. The provincial government, he has completely revamped Schedule-I and II of the Finance Act in line with international standards proposed by the United Nations. In Khyber Pakhtunkhwa Revenue Authority (KPRA), the provincial government has placed 28 out of the 58 taxable services at a reduced tax rate of below 15 percent.
These include restaurants, wedding halls, electronic media, property dealers, automobile dealers, rent-a-car businesses, contract manufacturing legal and medical services as well as other professional services, cinematographic services, photographers, broadcasting figures, call centres, amusement and entertainment services, beauty parlours and gym amongst others.
The provincial minister said in particular they are reducing the tax rate on ride hailing services to 2 percent, and on online marketplace services to 5 percent, so they could go long way towards job creation for the youth.
The provincial government has also proposed reducing or making minor adjustments to various fees and taxes in other sectors as appropriate with details available, including the transport sector, a core sector for the province to match rates in Punjab.