Excise, Taxation and Narcotics Control
Department, Khyber Pakhtunkhwa

Khyber Pass

Excise Office

State Bank

Professional Tax

THE KHYBER PAKHTUNKHWA FINANCE ACT, 1990
KHYBER PAKHTUNKHWA ACT NO. IV OF 1990.


[First published after having received the assent of the Governor of the Khyber Pakhtunkhwa in the Gazette of Khyber Pakhtunkhwa (Extraordinary), dated the 24th June, 1990].

AN ACT to continue, levy and revise certain taxes, cesses  and fees in the Khyber Pakhtunkhwa.

WHEREAS it is expedient to continue, levy and revise certain taxes, cesses and fees in the Khyber Pakhtunkhwa.
           
Preamble.---WHEREAS it is expedient to continue, levy and revise certain taxes, cesses and fees in the Khyber Pakhtunkhwa in the manner hereinafter appearing.
            It is hereby enacted as follows:-

  1. Short Title, Extent and Commencement. - (1) This Act may be called the Khyber Pakhtunkhwa Finance Act, 1990.

(2.)      It shall extend to the whole of the Khyber Pakhtunkhwa.

(3.)      It shall come into force on the first day of July, 1990.

  1. Definition .--- In this Act, unless the context otherwise requires, “Government” means the Government of the Khyber Pakhtunkhwa.

 

 Section 3-to-6 of this ACT does not relate to Tax on Profession, Trade and callings

  1. Tax on Professions, Trades and Callings. (1) There shall be levied and collected a tax, for each financial year, from persons engaged in professions, trades, callings or employment described in column 2 of the Table below at the specified rate against each category in column 3 thereof:

Provided that where a person falls in more than one category of profession, trade, calling, etc., he shall be liable to pay tax in respect of the one where the rate of tax is highest.

(2)       If a person liable to pay tax under sub-section (1) fails to pay the tax by the 30th day of September of the year to which the tax pertains he shall be liable to pay a penalty at the rate of 50% of the tax due from him in addition to the actual tax.

(3)       The Tax and the penalty levied and imposed under this section shall be recoverable as arrears of land revenue.

TABLE

S.No

Description of Tax Payers

Rates of Tax

1

2

3

1 (i)

All persons engaged in any profession, trade, calling or employment, other than those specifically mentioned hereinafter, in the Khyber Pakhtunkhwa Province, whose monthly income or earning:

    1. when exceeds Rs.3,000/- but not exceed Rs.6,000/-

Exempted

    1. when exceed Rs.6,000/- but not exceed Rs.10,000/-

Rs.140.00

    1. when exceed Rs.10,000/- but does not exceed Rs. 20,000/-

Rs.220.00

    1. when exceed Rs.20,000/-

Rs.290.00

(ii)

Employees of Federal and Provincial Government drawing pay in Basic Scales:

  1. BS-1 to 16

Exempted

  1. BS-17.

Rs.120.00

  1. BS-18.

Rs.180.00

  1. BS-19.

Rs.240.00

  1. BS-20 and above.

Rs.360.00

2-

All Limited Companies, Modarbas, Mutual Funds and any other body corporate with paid up capital and reserves in the preceding year, which ever is more:

  1. when not exceeding Rs.10 million.

Rs.12,000.00

  1. when exceeding Rs.10 million but not exceeding Rs. 25 million;

Rs.18,000.00

  1. when exceeding Rs.25 million but not-exceeding Rs. 50 million;

Rs.24,000.00

  1. when exceeding Rs.50 million but not exceeding Rs.100 million;

Rs.60,000.00

  1. when exceeding Rs.100 million but not exceeding Rs. 200 million; and

Rs.90,000.00

  1. when exceeding Rs. 200 million.

Rs.100,000.00

Explanation.- The paid up capital in case of foreign banks shall be the minimum paid up capital as determined by the State Bank of Pakistan.

3-

Persons, other than  companies,  owning  factories,  commercial establishments, private education institutions and private hospitals, having the following commercial establishments:

    1. Any Commercial establishment/factories having 10 or more employees which have not been otherwise explicitly given in this Table.

Rs.2,400.00

    1. Private Clinics & Hospitals having up to 10 employees.

Rs.3,600.00

    1. Private Clinics hospitals having employees more than 10 but not more than 50.

Rs.6,000.00

    1. Private Clinics & Hospitals having more than 50 employees

Rs.12,000.00

    1. Private Medical Colleges.

Rs.100,000.00

 

    1. Private Engineering Institutes having degree programs.

Rs.100,000.00

    1. Private Business Education Institutes.
  1. Having Upto 100 students
  2. Exceeding 100 students.

 

Rs.50,000.00
Rs.100,000.00

    1. Private Law Colleges.

Rs.50,000.00

    1. Private education institutions including professional and technical institutions, other than specified at e, f, g & h, charging monthly fee not exceeding Rs.1000/- per student.

Rs.1,500.00

 

    1. Private education institutions including professional and technical institutions, other than specified at e, f, g & h, charging monthly fee exceeding Rs.1000/- but not exceeding Rs.2000/- per student.

Rs.2,400.00

 

    1. Private education institutions including professional and technical institutions, other than specified at e, f, g & h, charging monthly fee exceeding Rs.2000/- but not exceeding Rs.5000/- per student.

Rs.3,600.00

 

    1. Private education institutions including professional and technical institutions, other than specified at e, f, g & h, charging monthly fee exceeding Rs.5000/- per student.

Rs.10,000.00

4-

Holders of import or export license, assessed to income tax in the preceding year with annual turn over-

  1. when not exceeding Rs.50,000.00

Rs.2,400.00

  1. when exceeding Rs.50,000.00

Rs.3,600.00

5-

Clearing Agents licensed or approved as Custom House Agents.

Rs.1,800.00

6-

Travel Agents-

 

a)     IATA travel agents approved.

Rs.9,000.00

b)     Non-IATA approved.

Rs.6,000.00

7-

Restaurants/Guest Houses liable to Sales Tax.

Rs 12,000.00

8-

Professional Caterers.

Rs 12,000.00

9-

Wedding Halls/Lawns (irrespective of their nomenclature).

Rs.30,000.00

10-

Advertising Agencies.

Rs.6,000.00

11-

DOCTORS,-

 

a-     Specialists.

Rs.3,600.00

b-     Non specialists including Medical Practitioners, Hakeems, Homeopaths etc.

Rs.1,200.00

12-

"Diagnostics and Therapeutic Centers" including pathological and chemical Laboratories"

 

a-     Located at Divisional Headquarters,

Rs.12,000.00

b-     Located at other places

Rs.2,400.00

13-

Contractors, Suppliers and Consultants who, during preceding financial year supplied to the Federal or any Provincial Government or any local authority in the District, Goods, Commodities, or rendered service of the value,-

a)     When exceeding Rs.10,000/- but not exceeding Rs.0.5 million

Rs 3,600.00

b)     When exceeding Rs.0.5 million but not exceeding Rs.1 million.

Rs.4,000.00

c)     When exceeding Rs.1.50 million but not exceeding Rs.2.5 million.

Rs.6,000.00

 

d)     When exceeding Rs.2.5 million but not exceeding Rs.10 million.

Rs.18,000.00

e)     When exceeding Rs.10 million but not exceeding Rs.25 million.

Rs.25,000.00

f)     When exceeding Rs.25 million but not exceeding Rs.50 million.

Rs.30,000.00

g)     When exceeding Rs.50 million and above.

Rs.100,000.00

14-

Petrol/diesel/C.N.G. Filling Stations-

Rs.6,000.00

15-

All establishments, including video shops, real estate shops/agencies, card dealers, and net cafes assessed or not assessed to income tax in the preceding financial year.

Rs.2,400.00

16-

Chartered Accountants with an independent audit practice and excluding those who are employed in companies not owned by them.

Rs 12,000.00 per annum."

  1. Application of Existing Laws .---Where any tax, fee or cess imposed by this Act is by way of an addition to the procedure provided in such enactment and the rules framed thereunder for the assessment, collection and recovery of such tax, shall, so far as applicable, apply to the assessment, collection and recovery of the additional tax, fee or cess.

 

  1. Bar of Suit in Civil Court .— No suit shall lie in any Civil Court to set aside or modify any assessment, levy or collection of a tax, fee, duty or cess made under this Act and the rules thereunder, or any penalty imposed under sub-section (2) of section 7.
  1. Power to Make Rules .--- Government may make rules for carrying into effect the purposes of this Act, and such rules may, among other matters, prescribe the procedure for the assessment, collection and payment of any tax, fee or cess, levied, or imposition of any penalty under this Act, in so far as such procedure is not provided for in this Act.

Substituted vide Khyber Pakhtunkhwa Finance Act 2011 (Khyber Pakhtunkhwa Act No.XIII of 2011)