KP keeps sales tax on services unchanged at 15% in budget FY26

News Image

By MG News | June 17, 2025 at 02:39 PM GMT+05:00

0:00

June, 17 2025 (MLN): The standard rate of sales tax on services in Khyber Pakhtunkhwa (KP) will remain unchanged at 15%, as per the KP Finance Bill 2025 presented in the Provincial Assembly.

The legislation proposes a significant simplification by replacing the existing positive list system with a negative list framework.

Under this change, all services provided in the province will be considered taxable unless specifically exempted.

In addition to this structural change, the bill also proposes a reduction in the stamp duty rate on allotment orders or transfers of allotment orders, from the current 2% to 1%.

The revised rate will apply to the plot’s value as per the higher of the Federal Board of Revenue (FBR) Valuation Table or the Deputy Commissioner’s rate.

Furthermore, the due date for advance payment of tax on urban immovable property, in order to avail the 20% rebate, is proposed to be extended from July 31 to September 30.

The KP government has proposed significant revisions to royalty rates on various minerals used by the cement industry.

According to the bill, the royalty rates on several key minerals will see a phased enhancement starting from the fiscal year 2025-26 and continuing annually until 2030-31.

The minerals affected include Gypsum, Limestone, Laterite, Marl, Sandstone, Silica Sand, Slate Stone, and Shale Clay—all essential raw materials for cement manufacturing.

Gypsum (Cement Factory), previously unlisted, will now be taxed starting at Rs350 per ton in 2025-26, increasing incrementally to Rs527 per ton by 2030-31.

Limestone, with an existing rate of Rs250 per ton, will rise to Rs527 per ton over six years.

Laterite, currently at Rs200 per ton, will follow the same enhancement schedule.

Marl and Sandstone, both previously not subject to royalty, will now match the revised rates starting at Rs350 per ton in 2025-26. Silica Sand, currently at Rs300 per ton, will increase to Rs527 per ton.

Slate Stone and Shale Clay, both currently at Rs250 per ton, will also see their rates more than double by 2030-31.

The annual enhancement follows a consistent trajectory: Rs350 (2025-26), Rs385 (2026-27), Rs424 (2027-28), Rs456 (2028-29), Rs490 (2029-30), and Rs527 (2030-31).

Related News

Name Price/Vol %Chg/NChg
KSE100 121,971.04
203.25M
-0.21%
-254.32
ALLSHR 76,217.24
1,149.99M
-0.15%
-117.46
KSE30 36,912.96
84.39M
-0.12%
-43.14
KMI30 179,918.47
73.52M
-0.30%
-548.04
KMIALLSHR 52,207.51
411.50M
-0.19%
-100.98
BKTi 30,290.55
27.27M
0.30%
91.94
OGTi 27,491.95
10.62M
0.08%
22.96
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 105,485.00 109,305.00
105,135.00
-3435.00
-3.15%
BRENT CRUDE 75.28 75.46
72.66
2.05
2.80%
RICHARDS BAY COAL MONTHLY 88.00 0.00
0.00
-3.25
-3.56%
ROTTERDAM COAL MONTHLY 103.80 103.90
103.75
0.05
0.05%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 72.21 72.37
69.56
1.96
2.79%
SUGAR #11 WORLD 16.45 16.94
16.44
-0.49
-2.89%

Chart of the Day


Latest News
June 17, 2025 at 05:02 PM GMT+05:00

Punjab govt unveils over Rs5tr budget for FY26


June 17, 2025 at 04:58 PM GMT+05:00

Chinese delegation eyes housing investments in Pakistan


June 17, 2025 at 04:37 PM GMT+05:00

K-Electric applies to list sukuk on PSX


June 17, 2025 at 04:20 PM GMT+05:00

Gold price in Pakistan falls Rs1,000 per tola



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg