Peshawar, Pakistan – The Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA) met with the Accountant General of Khyber Pakhtunkhwa to discuss the withholding of sales tax on services from bills processed through the AG office.
The meeting, held in Peshawar, focused on ensuring compliance with the sales tax laws, particularly in the erstwhile FATA and PATA regions. The KPRA emphasized the importance of withholding sales tax on services from bills related to these areas, as the exemption granted to them has expired.
The Accountant General agreed to the KPRA’s request and instructed his team to strictly enforce the withholding of sales tax. He also agreed to share data with the KPRA to facilitate better monitoring and compliance. Business Recorder
To enhance transparency and prevent misuse of exemptions, the KPRA announced that it would be uploading all exemption letters and clarifications on its website. Any exemption not listed on the website would be considered invalid.
To further streamline the process, the KPRA and the AG office agreed to work together to integrate the KPRA’s case-to-case exemptions into the AG Office’s Financial Accounting and Budgeting System (FABS). This will help to minimize human discretion and ensure consistency in the application of exemptions.
The meeting concluded with both parties expressing their commitment to working together to increase the revenue of the KPRA and contribute to the prosperity of Khyber Pakhtunkhwa.
