Khyber Pakhtunkhwa (KP) government restored local council property tax across the province after two years with the hope the collect Rs5.5bn annually.
The KP cabinet had waived the 2% property tax on immovable property tax due to the Coronavirus pandemic and approved the transfer of the same amount to the 84 Tehsil Municpal Administrations (TMAs) from the provincial exchequer.
The Finance Department officials said that all the TMAs have been directed to collect local council fee at the rate of 2%. In this regard, the Finance Department informed the Local Government Department to start the tax collection process from July 1.
Due to the Covid-19 pandemic, the KP government had stopped TMAs from collecting the property tax for two years ago and released Rs 4 billion in first year and Rs 1 billion in the next year to TMAs as their expenditure.
However, now that the situation has returned to normal, therefore, the KP government decided to start the tax collection. According to local government department sources, more than Rs5.5b is expected to be collected this year in term of local council fees, ie property tax.
