PESHAWAR: The Khyber Pakhtunkhwa government has imposed taxes of more than Rs15 billion in the budget of 2019-20 which would badly affect the public, including salaried people and business community.
The provincial government showed the new proposed tax rate in the finance bill but kept the existing tax rate hidden. It created confusion among the public whole day about the change in rate of taxes.
According to the finance bill, the tax amount on department stores has been raised from Rs10,000 to Rs 40,000. Likewise, the owners of petrol, diesel and CNG stations will have to pay Rs30,000 annually instead of Rs 12,000 while the owners of service stations will have to pay Rs 10,000 instead of Rs8,000 . The annual tax on specialist doctors has been raised from Rs 20,000 to Rs80,000 while the non-specialist doctors, medical practitioners, homeopaths will have to pay Rs30,000 instead of Rs10,000. The tax on physiotherapy centres and clinical laboratories has been increased from Rs20,000 to Rs25,000. The tailors were paying Rs 5,000 but now in the next budget they would have to pay tax according to their categories from Rs 10,000 to Rs 15,000. The tax on restaurants and guesthouses has been raised from Rs15,000 annually to Rs 40,000. The tax on people associated with catering business has been increased from Rs 15,000 to Rs40,000. Tax on marriage halls has been raised 100 per cent as the tax in the next budget has been increased from Rs30,000 to Rs 60,000.
According to the finance bill 2019-20 document, the companies which have 10 or more employees will have to pay Rs15,000 tax instead of Rs10,000. The private clinics and hospitals will have to pay Rs15,000 instead of Rs10,000. The tax on the electronics stores has been raised from Rs1,000 to Rs10,000. The tax amount on crushing plants has been raised from Rs6,000 to Rs 20,000 while the small plants will pay Rs8,000 instead of Rs2,500. Tax of Rs2 per kilo has been imposed Niswar. Tax on health fitness clubs has been increased from Rs2,000 to Rs3,000. The tax on all the limited companies and Mozarba corporate bodies with paid-up capital up to Rs10 million has been raised from Rs27,000 to Rs30,000. While the tax on companies with paid-up capital from Rs 10 million to Rs25 million has been raised to Rs50,000. The companies with paid-up capital between Rs 25 and Rs 50 million will pay tax Rs60,000 instead of Rs 50,000 while the companies with paid-up capital from Rs 50 million to Rs100 million will pay Rs90,000 instead of Rs75,000 while the companies with paid-up capital from Rs100 million to Rs200million will pay Rs100,000 tax.
In the budget 2019-20, the government employees from scale 1 to 6 have been exempted from tax while tax on government employees from grade 7 to 12 has been raised from Rs100 to Rs1,000. The tax on grade 13 to grade 16 employees has been raised from Rs 300 to Rs 1,200, grade 17 tax from Rs 300 to Rs1500, grade 18 from Rs800 to Rs18,00 and grade 20 and above Rs2,000 to Rs3,000.
The people with Rs20,000 monthly income will be exempted from tax while tax on monthly income of more than Rs20,000 and up to Rs30,000 will be Rs 1,000 instead of Rs435; tax on income of over Rs30,000 and up to Rs5,000 will be Rs1,200. Those earning more than Rs50,000 to Rs100,000 will pay Rs1500 tax. Tax on income of more than Rs 100,000 to Rs200,000 monthly will be Rs2,000 instead of Rs800. The tax on income of more than Rs200,000 to Rs500,000 will be Rs3,000 instead of Rs1,000.