PESHAWAR: Khyber Pakhtunkhwa government has set a massive revenue collection target Rs182.41 billion for the next fiscal year 2026-27, with 41.4 percent increase as compared to outgoing the financial year.
In the outgoing fiscal year, the revenue collection target was estimated at Rs129,000 million, including Rs83,500 million on tax and Rs45,500 million non-tax revenues, according to a finance bill approved by the provincial cabinet during its meeting, chaired by Chief Minister Muhammad Sohail Afridi here on Friday.
The meeting approved all proposals presented before the provincial cabinet.
The Finance Bill accompanying the budget proposes several new taxes and compliance measures.
Under the proposed legislation, taxes will be imposed on leased properties of Auqaf lands, while a new tax has been introduced on five-marla residential houses.
Amendments to the Motor Vehicles Act, 1958, introduce revised taxation rates for commercially operated vehicles.
Rickshaws will be taxed at Rs1,000 annually, four-seater vehicles at Rs1,500, and six-seater vehicles at Rs2,000.
For larger public transport vehicles, the bill proposes an annual tax of Rs400 per seat for 15-seater vehicles and Rs500 per seat for vehicles with more than 15 seats.
In the hospitality sector, hotels will be required to pay a 5 percent tax based on annual room capacity and actual occupancy.
Hotels without a point-of-sale (POS) system will be assessed on the basis of 50 percent occupancy of residential units and 10 percent of actual room rent.
The Finance Bill also introduces stricter enforcement measures for tax compliance.
Individuals who fail to file tax returns by the prescribed deadline will face penalties and additional surcharges.
A minimum fine of Rs400,000 has been proposed for those who fail to register before providing taxable services.
Those who fail to register within 90 days of providing taxable services could face up to one year in prison, a fine equal to the tax payable, or both.
Additional penalties include a Rs25,000 fine for unauthorised changes to registration details and a daily penalty of Rs300 for late filing of tax returns.
The bill further proposes a Rs500,000 fine, or a penalty equal to 5 percent of the tax amount, for failing to install a restaurant invoice management system.
Copyright Business Recorder, 2026
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