NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, as amended up-to-date, and the Provisional Constitution Order No. 1 of 1999, read with Article 4 of the Provisional Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf; The Governor of the Khyber Pakhtunkhwa is pleased to make and promulgate the following Ordinance:

1. Short title extent and commencement (1) This Ordinance may called The Khyber Pakhtunkhwa Finance Ordinance 2002.
2. It shall extend to whole of the Khyber Pakhtunkhwa.
3. It shall come into force on the 1st day of July, 2002.
4. Amendment of Act II of 1899 In the Stamp Act, 1899 (II of 1899), for Schedule I, the Schedule specified in Appendix I to this Ordinance shall be substituted.
5. Amendment of section 7 of Khyber Pakhtunkhwa Act IV of 1990. — In the Khyber Pakhtunkhwa Finance Act, 1990 (Khyber Pakhtunkhwa Act No. IV of 1990), in section 7, for the existing Table, the Table specified in Appendix II to this Ordinance shall be substituted —
6. Tax on hotels. — There shall be levied and collected every year a tax on hotels, payable by the owner or management, thereof at the rate of ten percent of the room rent per lodging unit per day, on the basis of fifty percent of the total number of lodging units available in the hotel concerned

Provided that the assessment in relation to a hotel at a hill station shall be made at the aforesaid rate for six months only in a year, that is from 1st day of April to 30th day of September (both days inclusive). [Provided that hotels in Kaghan Valley of the Khyber Pakhtunkhwa shall be exempted from tax for a period starting from 1st July, 2010 to 30th June, 2012.

Explanation. — In this section, unless there is anything repugnant in the subject or context —

(a) Hotel — means establishment where lodging with board or other service is provided for a monetary consideration, but shall not include —

(i) any home or hostel maintained exclusively for aged or sick persons, or, as the case may be, for  student, by or under the control of charitable, medical or educational institution

(ii) any rest house, mess or other premises belonging to or in the possession of the Federal or a Provincial Government, where lodging, board or other service is provided for Government officials or members of the Defence Forces.

(b) lodging Unit means a bed or other sleeping accommodation which is, or is intended to be,  provided to a  person staying over night in a room for lodging.

(c) Room Rent includes fans, air-conditioning, light, heat, telephone, bedding and all other payments connected with the lodging unit, except the portion, if any, directly attributable to supply of foodstuff.

Added vide Khyber Pakhtunkhwa Government Gazette, Extraordinary, 15th November, 2010.

Amended vide Khyber Pakhtunkhwa Act, 2019.