Manifold increase in professional tax

Khyber Pukhtunkhwa government has sent a notification to the offices of Accountant General and AGPR Sub Office Peshawar, instructing therein deduction of professional tax from the salaries of federal and provincial government officers and employees at 10 times enhanced rate.

The notification number: 1458 of April 14th 2020 has been issued under the provisions of Appendix- II of KP finance bill passed by the provincial legislature for the current fiscal year.

The deduction of professional tax has been increased abnormally as compared with the previous rate of this provincial levy. Till the last financial year government employees from BS 7 to BS16 paid professional tax at Rs. 100.But in the current year government servants in the bracket of BS 7-12 will pay a professional tax of Rs.1000; BS 13-16 Rs.1200, BS 17 Rs.1500; BS 18 Rs.1800; BS 19 Rs.2000 and from BS 20 and above Rs.3000.

The professional tax at the manifold increased rate shall be deducted from the salaries of current month from which a deduction equal to one day gross pay shall also be made for contribution towards Covid-19 relief fund of the Prime Minister. The provincial government should have deferred this levy to next month, with reasonably low rate, as professional tax is paid once in a year.

The professional tax imposed on different cadres of doctors, Hakeems and Homeopaths ranges from Rs.15, 000 to Rs.80, 000. These practitioners will certainly shift the impact of professional tax to their clients. It is the tax charged on services, but amazingly legal fraternity, who has a humongous out the books income, has not been brought under its ambit because of their political clout.