PESHAWAR: The Khyber Pakhtunkhwa government has approved the Finance Bill for fiscal year 2026-27, introducing significant increases in provincial taxes and penalties.
Under the new Finance Bill, the provincial government aims to collect more than Rs182 billion in taxes during the upcoming fiscal year.
For the first time, the bill proposes a 5 percent tax on cryptocurrencies and digital assets.
It also increases the penalty for failing to install a Point of Sale (POS) and e-invoicing system from Rs200,000 to Rs500,000.
According to the bill, tax rates on passenger vehicles have been revised, while new annual tax rates have been set for rickshaws, vans, and buses.
The legislation also proposes a fine of Rs400,000 or up to one year in prison for businesses that fail to register with the tax authority.
In cases of tax fraud, the bill includes a penalty of Rs500,000, imprisonment of up to five years, and an additional fine equivalent to 100 percent of the unpaid tax amount.
Similarly, businesses that do not conduct transactions through banking channels could face a fine of Rs50,000 and imprisonment of up to six months.
Under the new fiscal measures, the province is moving towards a stricter and more digitalized tax system aimed at increasing revenue collection and ensuring greater transparency.
