PESHAWAR (Web Desk) – The Khyber Pakhtunkhwa government has approved the Finance Bill 2026-27, unveiling a series of tax reforms aimed at boosting revenue collection and strengthening tax compliance across the province.
A key feature of the bill is the introduction of a 5 percent tax on cryptocurrencies and digital assets, marking the first time such assets will be brought under the provincial tax framework.
The legislation also significantly increases penalties for businesses that fail to install Point of Sale (POS) and e-invoicing systems, with fines rising from Rs200,000 to Rs500,000.
To enhance documentation of the economy, the bill imposes stricter penalties on unregistered businesses. Commercial entities operating without registration could face fines of up to Rs400,000 or imprisonment for up to one year.
The new fiscal measures further target tax evasion. Under the bill, tax fraud may result in a Rs500,000 fine, imprisonment of up to five years, and an additional penalty equal to the amount of unpaid tax.
Businesses failing to conduct transactions through banking channels could also face legal action, including a Rs50,000 fine and up to six months in prison.
In addition, the provincial government has revised tax rates on passenger vehicles and introduced new annual taxes for rickshaws, vans, and buses.
The KP government expects the measures to help generate more than Rs182 billion in tax revenue during the 2026-27 fiscal year while promoting transparency and digitalization in the tax system.
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