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SEED Program: Frameworks for reforming Khyber Pakhtunkhwa’s Property Tax and Sales Tax regime
Funded by: FCDO
Team lead: Hasaan Khawar
Duration: 2020
The provincial government in Khyber Pakhtunkhwa (KP) requested IGC’s support in collaboration with CDPR’s to help formulate its reform agenda around two important sub-national tax instruments, the urban property tax and sales tax on services. Such taxes are important sources of revenue for the Pakistan’s provinces. With the increased pressure on provinces to deliver during the covid-19 crisis, it has been pivotal to maximize the potential of such taxes to create much-needed fiscal space for improved service delivery.
Key Output(s)
Report
The existing sales tax legislation in Pakistan’s province of Khyber Pakhtunkhwa (KP) has significant weaknesses. The team has worked with the KP government on a report addressing various components of the Sales Tax on Services Act in KP.
The report on property tax in KP acts as a policy guide for the KP government to carve out a framework for future reform to improve the performance of urban property taxes in KP.