No new tax on lawyers in KP Finance Bill 2025, says DG KPRA

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PESHAWAR, Jun 18 (APP): Director General of the Khyber Pakhtunkhwa Revenue Authority (KPRA), Fouzia Iqbal clarified on Tuesday that no new tax has been imposed on lawyers in the Finance Bill 2025.
She stated that a Rs. 500 Sales Tax on Services per case was introduced under the Finance Act 2024 and has already been in effect since last year.
The clarification came in response to a recent press statement issued by the Khyber Pakhtunkhwa Bar Council regarding the alleged imposition of a new tax on lawyers in the province.
The DG explained that the perception of a new tax is incorrect, as the tax was imposed in the previous fiscal year. However, KPRA has not yet launched any enforcement action to collect the tax.
She further noted that Sales Tax on Services is also applicable to lawyers in Sindh and Punjab, where the tax rates are higher than those in Khyber Pakhtunkhwa.
Fouzia Iqbal added that lawyers are not currently required to register with KPRA for the purpose of tax collection.
She said KPRA plans to engage with the legal fraternity next month to build consensus on the tax’s implementation and will extend all possible support to ensure smooth and effective compliance.