PESHAWAR: Instead of imposing new taxes, Khyber Pakhtunkhwa government, in the new financial year 2020-21 has given special concessions to property tax, trade and professional tax defaulters till June next year.

The relief has been announced in the Finance Bill for the financial year 2020-21 which was presented in the budget session of the Provincial Assembly.

According to the Finance Bill 2020-21, the property tax will not be levied till June 2021. They have to pay their dues in 12 installments with 25% discount and 30% discount on lump sum payment till June 30, 2021.

And if the amount due isn't cleared, not only the full tax amount, including penalty, will be recovered but also the transfer of their properties will not be possible until all the dues are cleared.

Similarly, by amending the motor vehicle registration as per the Finance Bill, the EOC requirement for registration of vehicles registered in Punjab and in KP has been removed, but in case of not registering within one year, registration fee will be imposed.

According to the Finance Bill, the KP Revenue Authority has increased its revenue from Rs 10 to Rs 17 billion despite the Coronavirus outbreak. The total tax revenue of the province will be Rs 36 billion this year.

According to the bill, the Local Government Department has also abolished taxes on about 200 SMEs (Small and Medium Enterprises). The Excise and Taxation Department has also abolished taxes on small businesses and individuals. Similarly, hotel tax and professional tax on all hotels and more than 18 professionals in the province have been abolished. However, it will be necessary for such professionals to have their business registered with KP Revenue Authority.

In order to increase the registration of vehicles in the province, the fee for re-registration as well as the requirement of NOC from other provinces has been abolished.

The location factor of property tax on immovable property has been reduced and tax-payers who pay their taxes on time will get up to 35% more concession.