PESHAWAR: The Government of Government of Khyber Pakhtunkhwa has announced a wide-ranging tax relief package in its budget for the financial year 2026-27, focusing on low-income employees, small property owners, and industrial sectors.
Presenting the budget speech, Chief Minister Sohail Afridi said the provincial government has decided not to impose any new taxes in the upcoming fiscal year.
Under the proposed measures, properties up to five marlas—both residential and commercial—will be exempted from property tax, providing relief to small homeowners and businesses.
The government has also proposed reducing the infrastructure development cess from 2 percent to 0.75 percent, aiming to ease the burden on businesses and encourage investment.
In the industrial sector, a 30 percent waiver on outstanding tax liabilities for industrial units has been proposed, which officials say is intended to improve compliance and revive struggling enterprises.
Further relief measures include reducing hotel bed tax from 7 percent to 5 percent, abolishing professional tax for individuals earning the minimum income, and exempting Grade 1 to 6 government employees from professional tax.
The budget also confirms continuation of tax exemptions for former FATA and PATA regions, with no new taxes introduced for these areas.
