No Zero-Rated Services Under Khyber Pakhtunkhwa Revenue Authority

While the Khyber Pakhtunkhwa Revenue Authority (KPRA) plays a vital role in managing provincial sales tax on services in Pakistan, it’s important to understand that the current regulations don’t offer any “zero-rated” services.

What Does “Zero-Rated” Mean?

In the context of sales tax, a zero-rated service is one where no tax is levied at the point of sale. This can be beneficial for certain sectors or services deemed crucial for economic development or social welfare.

The KPRA Scenario:

As per KPRA’s current framework, all taxable services provided within Khyber Pakhtunkhwa are subject to the general sales tax rate of 15%, or potentially a reduced rate specified in the Second Schedule of the Khyber-Pakhtunkhwa Sales Tax on Services Act, 2022.

What are the Alternatives?

While there are no zero-rated services under KPRA, some exemptions might exist for specific service categories. It’s advisable to consult the KPRA website or relevant tax professionals to determine if any exemptions apply to your particular situation.

The KPRA regulations can be subject to change, so it’s crucial to stay updated on any revisions that might introduce zero-rated services in the future. Here are some resources to keep you informed:


Understanding that KPRA doesn’t currently offer zero-rated services helps businesses plan their finances and tax obligations effectively. By staying informed about potential future changes, you can ensure continued compliance with KPRA regulations.

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