PESHAWAR: The Khyber Pakhtunkhwa government has approved the Finance Bill for the fiscal year 2026-27, under which new taxes and penalties have been significantly increased at the provincial level.
According to the new Finance Bill, the provincial government will collect more than Rs182 billion in taxes in the next fiscal year.
The bill has proposed to impose a 5 percent tax on crypto and digital assets for the first time, and the penalty for not installing a POS and e-invoicing system has been increased from Rs200,000 to Rs500,000.
According to the Finance Bill, the tax on passenger vehicles has been changed, while a new annual tax rate has been set for rickshaws, vans and buses.
A fine of Rs400,000 or one year in prison has also been proposed for not registering a business with the tax authority.
The bill also includes a provision for a fine of Rs500,000, imprisonment for up to 5 years and an additional penalty equal to 100 percent of the tax due.
Similarly, a fine of Rs 50,000 and imprisonment of up to 6 months has been proposed for not conducting business transactions through a bank.
According to the new financial laws, the tax system in the province is being made more stringent and digital to increase revenues and ensure transparency.
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