Khyber Pakhtunkhwa (KP) Finance Minister Taimur Saleem Jhagra on Tuesday presented the provincial budget having a total outlay of Rs 900 billion for the financial year 2019-20.
A total of Rs 236 billion have been allocated for the Annual Development Programme (ADP).
Opposition members protested during the budget session against the Pakistan Tehreek-i-Insaf (PTI) government for not issuing production orders for former president Asif Ali Zardari.
According to the budget speech, provincial income taxes are being increased for the year 2019-20. According to the newly-proposed regime, individuals with Rs 20,000 to Rs 30,000 monthly income will have to pay Rs 1,000 per month. A tax of Rs 1,200 per month has been proposed for those individuals earning between Rs 30,000 to Rs 50,000 per month.
The individuals falling in the next slab of Rs 50,000 to Rs 100,000 monthly income will have to pay Rs 1,500 monthly. Similarly, Rs 2,000 per month tax has been proposed for those earning Rs 100,000 to Rs 200,000. Rs 3,000 tax is proposed for the income of Rs 200,000 to half a million rupees and R s5,000 for income of more than Rs 0.5 million per month.
As far as public sector employees are concerned, the provincial government has proposed zero taxation for grade one to six employees of the provincial government. Rs 1,000 in tax per month will be charged from the employees of grade seven to 12. Rs 1,500 tax per month will be charged from provincial government employees of grade 13 to 17. Rs 1,800 monthly tax has been proposed for grade 18 employees, Rs 2,000 for grade 19, and Rs 3,000 for grade 20 officers.
Govt increases tax on tobacco retailers, niswar
The government has also proposed to increase the rate of taxation on private companies and businesses.
The 2019-20 budget proposes to impose taxes of Rs 27,000 to Rs 100,000 per annum on businesses with incomes of Rs 10 million to Rs 200 million, respectively.
Annual tax on marriage halls will be Rs 60,000 and Rs 40,000 on restaurants and hotels. Similarly, dentists will have to pay Rs 15,000 per annum, general physicians Rs 10,000, and specialists doctors in Peshawar Rs 80,000 per year. In areas other than Peshawar, the rate will be Rs 50,000 per year.
The budget also proposes a tax of Rs 30,000 on CNG and other gas stations. Similarly, Rs 325 per acre will be charged against land measuring five to 12 acres.
Those tailors who stitch shalwar kameez suits will have to pay Rs 10,000 per year, while those who stitch trousers and shirts will have to pay Rs 15,000 annually.
According to the new tax recommendations, Rs 40,000 tax will be imposed annually on departmental stores, Rs 10,000 on electronics shops, Rs 2,000 on tobacco wholesalers, Rs 1,500 to Rs 3,000 on fitness clubs, Rs 8,000 on service stations, and Rs 100,000 on private medical and engineering colleges. The tax on niswar will also be increased by 50 paisas per kilogramme.
