KP Excise Dept Issues New Professional Tax Rates for FY2025-26

The Khyber Pakhtunkhwa (KP) Excise, Taxation and Narcotics Control Department has released the revised professional tax rates for the upcoming fiscal year, according to the provincial budget documents. The updated tax scheme introduces changes in the taxation rates for various professions, businesses, and employment sectors. Adjustments include both increases and decreases in tax rates across several industries. According to the new budget, individuals earning between Rs. 20,000 and Rs. 36,000 per month, who previously paid Rs. 1,000 annually, are now exempted from the professional tax. Similarly, commercial establishments and factories employing 10 or more workers will now pay Rs. 20,000 annually, up from Rs. 15,000. Private clinics and hospitals with up to 10 employees will also see their annual tax increase from Rs 15,000 to Rs. 20,000. Larger private hospitals with 10 to 50 employees will pay Rs. 80,000 annually, compared to the previous Rs. 60,000. In a significant relief for medical professionals, the specialist doctors practicing in Peshawar will now pay Rs. 40,000 annually instead of Rs. 80,000. Those operating in divisional headquarters will pay Rs. 35,000, down from Rs. 60,000. Non-specialist doctors, including Hakims, homeopaths, and dentists, will also benefit from reduced tax rates. Contractors providing goods or services to government institutions will now pay a higher tax of Rs. 10,000 annually on contracts ranging from Rs. 10,000 to Rs. 500,000 double the previous rate. Similarly, the taxes for marriage halls and event lawns have been increased from Rs. 60,000 to Rs. 70,000. Tax for gyms and fitness centers in provincial headquarters has been raised from Rs 3,000 to Rs. 10,000. Electronics stores would have to Rs. 20,000 instead of Rs. 10,000. The tax for chemists and medical stores reduced from Rs. 20,000 to Rs. 15,000. The revised tax rates will come into effect starting July 1, 2025, as part of the provincial government’s broader fiscal reforms aimed at restructuring and optimizing revenue collection.