PESHAWAR: The Khyber Pakhtunkhwa (KP) government has implemented a new annual taxation regime on several businesses and service providers as part of the Budget 2026-27, aiming to broaden the provincial tax base and increase revenue.
According to the newly issued schedule, a wide range of commercial sectors, professionals, manufacturers, and service providers will now be required to pay fixed annual taxes. The provincial government says the measures are intended to strengthen revenue generation and improve tax compliance across different industries.
Key Annual Tax Rates
The newly imposed annual taxes include:
Petrol, diesel and CNG filling stations: Rs. 35,000 per year
Transporters (medium-sized): Rs. 15,000 annually
Additional transport branches: Rs. 10,000 each
Chartered Accountants: Rs. 25,000 annually
Money changers (medium category): Rs. 100,000 annually
Additional branches: Rs. 50,000 each
Tobacco dealers and exporters: Rs. 25,000 annually
Electronics stores: Rs. 25,000 annually
Tailoring and handicraft-related businesses:
Full tailoring workshops: Rs. 15,000 annually
Tailors engaged only in stitching shalwar kameez: Rs. 5,000 annually
Taxes on Service Providers
The government has also introduced annual taxes on various service sectors, including:
Vehicle service stations: Rs. 10,000
Real estate agencies: Rs. 10,000
Stock exchange members: Rs. 60,000
Bone setters and indigenous healers: Rs. 35,000
Departmental stores and supermarkets: Rs. 100,000
Chemists and medical stores: Rs. 20,000
Flour mills: Rs. 40,000
Cotton ginning and shelling units: Rs. 20,000 annually
Tax on Food Businesses
Under the revised taxation framework, sweet shops and bakeries will also face higher annual taxation, with rates ranging from Rs. 10,000 to Rs. 15,000, depending on the category of the business.
The KP government states that the new taxation measures are part of its strategy to expand the provincial tax net and enhance domestic revenue collection. By bringing additional business categories into the tax system, the province aims to generate more funds for public services and development projects.
Business owners operating in the affected sectors are advised to ensure timely registration and payment of the applicable annual taxes to avoid penalties under provincial tax laws.






