The provincial government in Khyber-Pakhtunkhwa (KP) requested the International Growth Centre’s (IGC) 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.
This study was funded by Foreign, Commonwealth and Development Office (FCDO) Sustainable Energy and Economic Development (SEED) programme in 2020.
Key Output(s)
Report: Reforming Sales Tax on Services in KP
The existing sales tax legislation in Pakistan’s province of Khyber-Pakhtunkhwa (KP) has significant weaknesses. Faisal Rashid and Anjum Nasim have worked with the KP government to address various components of the Sales Tax on Services Act in KP.
Report: Reforming Property Tax in KP
The report on property tax in KP, written by Ali Abbas and Ali Cheema, 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.
