Hidden taxes surface in KP budget: Wedding halls, homes, schools hit

PESHAWAR: The Khyber Pakhtunkhwa government KP has introduced new taxes in its 2025-26 budget, affecting wedding halls, private schools, tailors, homes, gyms, and money changers.

Wedding halls will now face fixed taxes per event, ranging from Rs. 10,000 for small roadside venues to Rs. 50,000 for large halls in posh areas. Tailors will also be taxed—Rs. 5,000 annually for those stitching shirts and trousers, and Rs. 15,000 if they also make vests and pants.

Homeowners renting out properties will be taxed at 10%, rising to 15% if leased to financial institutions. However, owner-occupied houses under 4.9 marla remain exempt. Private schools will see tiered taxes based on education levels (primary, middle, high, etc.).

Additionally, gyms in Peshawar must pay Rs. 10,000 yearly, while those outside the city pay Rs. 5,000. Money changers face a Rs. 50,000 annual tax in Peshawar and Rs. 25,000 elsewhere.

The government claims the budget is “tax-free,” but opposition parties argue it burdens the public with hidden levies.

Also read: KP budget crisis deepens as CM directs lawmakers to avoid cut motion vote

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