PESHAWAR – The Khyber Pakhtunkhwa government has proposed tax relief measures for the upcoming fiscal year 2026–27 budget, including exemptions for residential and commercial properties up to 5 marla and relief for low-income employees. The government also announced that no new taxes will be introduced in the new budget.
Chief Minister Sohail Afridi, while presenting the budget, said the province has decided not to impose any new taxes and has proposed reducing the Infrastructure Development Cess rate from 2% to 0.75%.
He added that properties up to 5 marla will be exempted from property tax, while the hotel bed tax is proposed to be reduced from 7% to 5%.
The budget also proposes abolishing professional tax for individuals earning the minimum monthly income and exempting government employees from Grade 1 to 6. A 30% relief on outstanding tax dues for industrial buildings has also been suggested.
The provincial government further said the tax relief policy for former FATA and PATA areas will continue, with no new taxes imposed in these regions in the next fiscal year.
